The client placed the large sysouts on HOLD, and were then able to get the View SARSTC task to run.
As space needs in a Forward Recovery Dataset (FRDS) may peak at time, exceeding all that is being allocated, Forward Recovery will do its own recovery by creating another file.
A SD37-04 condition can be addressed with issuing command "/F sarstc,INEW", to run a View interim backup, which will clear the content of the FRDS.
Unless the usage of the FRDS is monitored in some way, it is best to set the SARINIT RCVPRIM=... and RCVSEC=... parameters to an amount of space that is comfortable, but with also being able to accommodate peak times.
Where possible, consider using SARINIT TAPECLSL=... (where whatever is in TAPECLSL must also be in CLSL), which can write large reports directly to tape, skipping its being on the disk layer, which will save FRDS space.