Refer to the exhibit.

The Playbook is designed to manually reduce the vCPU count on any selected VM within the environment. However, it failed during a test run on VM2 because there was a running snapshot of the VM. According to Nutanix Multicloud Automation (NCP-MCA) principles, you cannot reduce the vCPU count on a VM that has an active snapshot1. This is because the snapshot captures the state of the VM configuration and data, and reverting to a snapshot will restore both the guest OS and the virtual hardware2. Therefore, changing the vCPU count while a snapshot is running will cause inconsistency and error. The other options are incorrect because:

A. The Playbook can be executed against a VM on AHV, as long as there is no snapshot running3.

B. The VM does not need to be powered off before vCPU can be reduced, as this can be done using hot-plug CPU feature4.

D. The play will not cause the VM to go below the minimum vCPU, as the minimum number of vCPUs is set to 1 in the Playbook, and the VM has 4 vCPUs initially. References: Nutanix Support & Insights, Solved: Snapshot query !! - VMware Technology Network VMTN, Calm on ESXi Deployment | Nutanix Community, Virtual CPU Configuration and Limitations - VMware Docs