What can I do to address this?
Fortunately, there is a work-around. One can create a new policy which is identical to the original policy of the VM/VMDK, but with one additional policy setting added: Force Provisioning set to Yes. You can now apply this new policy to the VM/VMDK that you wish to snapshot.
The original policy would look something like this:
The new policy would look something like this:
You may now apply this policy to the VM, and propagate it to all the objects. Here is the original RAID-5, and the new policy RAID-5-RP with the Force Provision has been selected.
After the policy has been changed, the VM is still using RAID-5 with one object still absent (due to the failure).
With the policy with Force Provisioning set to Yes applied, you can now go ahead and snapshot the VM/VMDK. The snapshot will now be created as a RAID-0 object, not a RAID-5.
Once the underlying issue has been resolved and the fault has been rectified, the snapshot can have the the RAID-5 policy applied to make it highly available.