[SOLVED] vzdump fails - sysfs write failed

Unchecked the KRBD flag in the RBD config - seems to have fixed the sysfs write failed issue.
If someone can explain what the krbd flag does in the RBD config that would be great

As Moayad said, it is required for containers, but the flag sets all RBD access via the kernel RBD module. IIRC, the kernel module is developed separately from the Ceph libraries and utilities, so it does not always maintain feature parity. You should be fine with leaving the KRBD disabled -- QEMU will use librbd/librados for your VMs and, if you have containers, CTs will use KRBD regardless of the setting.

Given there was a PVE kernel update right before you began experiencing these issues, this looks like the likely cause.