While cloning one of my templates received the following error: “
Incompatible device backing specified for device '12'.”
VMWare tools were updated to the newest version and machine was powering on no problem.
To resolve the issue make sure that CD-ROM properties are set correctly.
“Edit the settings” of the virtual machine:
1) Remove the CD-ROM assigned as the device is probably pointing to some non-existing location,
2) If the device is set to Host Device change it to Client Device,
3) You may also want to try to point the device to some local ISO file if you find it easier.