Github user syed commented on the issue:
https://github.com/apache/cloudstack/pull/1600
A bit of background on how this feature works. When locationType is
specified as `Archve`, a snaphsot is taken at the storage, but the copy to
seconday storage is done via the hypervisor as it is able to correctly attach
the LUN and extract the underlying virtual disk. This was done as an
alternative to taking the snapshot on the hypervisor and upload it to secondary
storage directly becuse, we've seen cases where hypervisor snapshots cause a
significant delay in read/write performance and snapshot on storage device
allows us to take snaspots without sacrificing performance.
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