The VM Files folder in a storage repository navigation tree lists all the virtual machine configuration files in the storage repository. In the Create Virtual Machine wizard you specify which storage repository to use to store the configuration file of your virtual machine. Consider the VM Files folder to be the home location of all the virtual machines that have been created in the selected storage repository. You cannot perform any actions on the virtual machine configuration files. If you want to rename, move or delete any of these files, you should perform those operations on the virtual machine, not just the virtual machine configuration file.