However this setting will not work if You did not perform additional configuration .
Follow the below step by step instruction on how to enable this feature:-
1. Make sure the VMM library shares folder has set to following share and NTFS permission.
HyperV1 - Read (Hyper V host)2. Go to Active Directory User and Computer snap in, locate the computer name for HyperV1 and go to Properties.
HyperV2 - Read (Hyper V host)
HyperV3 - Read (Hyper V host)
scvmm service account - Read (VMM service account)
3. Click on delegation tab and select the option "Trust this computer for delegation to specified services only"
and "Use any authentication protocol"
Click Add to add the service type.
4. Click on User or computer button, key in your VMM library server computer name and select the "cifs" services.
5. The result will display the cifs-library server.
Repeat step 2-5 for the rest of the Hyper V hosts.
Once you have enabled the above setting, you can proceed to tick and use "Share Image file instead of copying it".