Hi Anup,
I have seen this before, but it is rare. If you look on your PPT server for the transaction log file given in the error message, I think you'll find that it doesn't exist (because it has already been deleted). If so, then what is occurring is that we deleted the log successfully on a previous retention policy run, but for some reason the exit status of the delete command didn't make it back to the Delphix application stack, so we didn't record the log's deletion in the metadata. So, each time we run retention policy enforcement, we try to delete a log that's already gone.
Versions 3.2.7.0 and later of Delphix Engine are no longer susceptible to this error.
To get past this error in versions 3.2.6.0 and earlier, simply create an empty file with the same name as the log file we are trying to delete, in the correct folder on the PPT server.
Cheers,
Michael