You did clone the entire repository. The volley folder is a git submodule which points at another repository. Normally, --recursive tells git to fetch all submodules (and the submodules of those submodules) when you clone the repository. However, the error message suggests there's a problem with the submodule repository. It looks like the repository no longer exists.
If this is indeed the Google volley repository you think it is, try cloning the repository without --recursive. Then edit the .gitmodules and change the path of the volley entry to https://github.com/google/volley.git. Then run
git submodule update --init --recursive
If the Google repository contains the same commit that the repository was pointing at, you'll be good to go.