I am using user having all privileges for browse credentials, still facing issues. Could you advise if i need to check something else.
Without logs or possibly debug logs, it will be hard to pinpoint the issue. Judging from the error thrown by the VMware SDK, it's going to be a permission issue, somewhere.
The server running Protect will need access to these files on the data store directly. Are you able to UNC to the folder that contains the VM on the host server?
Have you opened a case for this issue?