I experienced this error when trying to delete or overwrite placeholders left by Symantec Enterprise Vault.
The scenario was that we’d migrated our shared data drive from one VM to another by means of copying/attaching the VHD to a new fileserver VM. The new VM didn’t have the Symantec File System Archiving (FSA) agent installed, and therefore also didn’t have the NTFS filter drivers installed.
FSA uses “Reparse Points” to create placeholders for archived files. You’ll see this error if the File Blocking driver and Placeholder drivers aren’t installed.
Even though I’m not going to be using FSA on the new server, I had to install the Enterprise Vault FSA agent. That resolved my problem, and I was then able to restore the files over the top of the placeholders.