“A lambda expression with a statement body cannot be converted to an expression tree”

Is objects a Linq-To-SQL database context? In which case, you can only use simple expressions to the right of the => operator. The reason is, these expressions are not executed, but are converted to SQL to be executed against the database.
Try this

Arr[] myArray = objects.Select(o => new Obj() { 
    Var1 = o.someVar,
    Var2 = o.var2 
}).ToArray();

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