SCE or SCSQL backup fails with error API invoke failed

• SnapCenter Server (SC)
• SnapCenter Plug-in for Microsoft Exchange Server (SCE)
• SnapCenter Plug-in for Microsoft SQL Server (SCSQL)

• SCE / SCSQL backup fails with API invoke failed error
• Errors seen in job logs for SCSQL backup:
• SnapManagerWeb_<Job_ID> log

2023-06-23T13:57:29.9866182+02:00 INFO  SnapManagerWeb_1750796 PID=[4888] TID=[22] Enter JobManagerProvider: UpdateJobStatus
2023-06-23T13:57:29.9866182+02:00 DEBUG SnapManagerWeb_1750796 PID=[4888] TID=[22] Updating the job (1750796) task (Creating Snapshot copy) status as Failed
2023-06-23T13:57:29.9866182+02:00 INFO  SnapManagerWeb_1750796 PID=[4888] TID=[22] Enter UpdateJobStatus
2023-06-23T13:57:29.9866182+02:00 INFO  SnapManagerWeb_1750796 PID=[4888] TID=[22] Exit UpdateJobStatus
2023-06-23T13:57:30.0022470+02:00 INFO  SnapManagerWeb_1750796 PID=[4888] TID=[22] Exit JobManagerProvider: UpdateJobStatus

• SCW_<Job_ID> log

Critical SDW PID=[4608] TID=[5940] The running command stopped because the preference variable "ErrorActionPreference" or common parameter is set to Stop: API invoke failed.   at System.Management.Automation.Runspaces.PipelineBase.Invoke(IEnumerable input)
Verbose SDW PID=[4608] TID=[5940] ex.Message : The running command stopped because the preference variable "ErrorActionPreference" or common parameter is set to Stop: API invoke failed.
Verbose SDW PID=[4608] TID=[5940] InitializeONTAP() throw exception:  API invoke failed.
Error SDW PID=[4608] TID=[5940]  API invoke failed.   at SnapDrive.Nsf.Core.Storage.StorageConnection.Initialize(SDStorageSystemId storageSystemId)
Error SDW PID=[4608] TID=[5940] GetStorageSystemVersion failed
Error SDW PID=[4608] TID=[5940] Failed to connect to the storage system <Storage_Cluster_Name / SVM_Name>
Error SDW PID=[4608] TID=[5940] Failed to get the volumes for all volumes.

• SMCore_<Job_ID> log

ERROR SMCore_1750796 PID=[5260] TID=[14] Create snapshot '<Snapshot_Name>' failed: Snapshot operation failed.  API invoke failed.. 
ERROR SMCore_1750796 PID=[5260] TID=[14] ErrorCode (-1), ErrorMessage (Create snapshot '<Snapshot_Name>' failed: Snapshot operation failed.  API invoke failed.. )

• SmSql_<Job_ID> log

DEBUG SmSql_<Job_ID> PID=[3456] TID=[4] updating snapshot failure for database: <Database_Name>
DEBUG SmSql_<Job_ID> PID=[3456] TID=[5] Info: SQL server will not backup this db as snapshot creation has failed.