The issue was caused because the project name was modified and the MARInfo file wasn't updated accordingly.
The structure of a MARInfo file for a VSM is basically the following:
<?xml version="1.0" ?>
This above structure will change based on how a MARI file was created, i.e. from a test case, a test suite or a virtual service.
You can modify the MARI file using DevTest Workstation and also using a text editor. However, there is no feature to validate the manually modified MARInfo file.
Make sure the MARI file has the correct asset information. For example: correct path, name to the VSM and config file.