Here are a few things to try. Restart the vcenter service, login into ESXI and power on the vm. That last one did it for me when I got this error. Here is a post on this I found when I was troubleshooting, VMware: The operation is not allowed in the current connection state of the host | VMpros. Also if you are running DRS make sure that none of the hosts are in maintenance mode. This was another thing I found out when I was turning on and off of nobs to test and learn.
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