The required level of DFSMS/MVS is not installed on the system to perform tape hardware compaction.
DFSMShsm processing continues. Hardware compaction will not be used. All other SETSYS parameters are processed.
The required level of DFP for tape hardware compaction is 2.4.0 or greater, except DFP 3.1.1. MVS/SP-JES3
DFSMShsm