Guest disk reported full

[nfidia]

It's right there in the log file you posted.

"00:10:01.582 PIIX3 ATA: Host disk full"

I am not sure if this would be a bug.

Within the XP guest system there is more than 1 GB free space in the c drive
I cannot remember if I configured my guest system so, that volume c should have a fixed size, or should grow dynamically.

If I configured the c drive to have a fixed size, then the disk should not be full because more than 1 GB in the c drive is free

If I configured the c drive to grow dynamically, why then is there more than 1 GB free in the c drive?

[stefan.becker]

The guest is not able to look at the free size on host.

[mpack]

If I configured the c drive to grow dynamically, why then is there more than 1 GB free in the c drive?

The (simulated) guest drive has a remaining capacity of 1GB before it reaches its max. However, being a dynamic drive it has not yet asked for the host space to realize that capacity. Delayed requesting of host resources is what makes a dynamic drive different from a fixed size one; in the latter case all required host resources are requested at creation time.

In your case the dynamic request for additional resources fails, because the host has no more free disk space in the relevant volume.

If you had created the drive as fixed then the only difference is that you'd have got the host disk full message immediately (when the drive was created), whether or not your VM would have really needed all that space.

None of this is a bug. It is behaving as designed, and as you asked it to behave when you created the VM.