In System Center 2012 Virtual Machine Manager, a virtual machine (VM) may have a status of Unsupported VM Configuration if the virtual machine was configured to use an ISO image file and the Share image file instead of copying it option is selected.
This is a known issue in System Center 2012 Virtual Machine Manager.
To resolve this issue, install Update Rollup 2 for System Center 2012 by following the steps documented in the following knowledge base article:
To workaround the Unsupported VM Configuration status, detach the ISO file using the Hyper-V Manager console.
To detach the ISO file using the Hyper-V Manager console, perform the following steps:
1. Open the Hyper-V Manager console on the server that is running the virtual machine that has the “Unsupported VM Configuration” status.
2. Open the Virtual Machine Settings.
3. Select the DVD Drive, change the media option to None and click OK.
4. In the VMM console, refresh the virtual machine.
5. Once the VM refresh completes, the virtual machine should show the correct status.
To prevent this issue from occurring, do not select the “Share image file instead of copying it” option when attaching an ISO file to a virtual machine.