The filesystem is thoroughly corrupted, I'd say. Since this is a virtual machine, I would have a look at the file on the hypervisor host that it resides on; perhaps that filesystem is full or the file has other issues.
I would try creating another VM, mounting that filesystem there and doing a manual fsck. Or boot the broken VM from a life DVDROM or into rescue mode (if this VM has a rescue mode), and again perform a manual fsck.
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