Try each of the following steps in order until the issue is resolved:

  1. Verify the backup destination directory does not contain spaces or non-alphanumeric characters (letters, numbers, underscores).
  2. Verify the Disk Space Required for the backup is available on the destination directory.
  3. Grant the SYSTEM account Full control to the backup directory.
  4. Verify anti-virus, firewall, or anti-malware tools are not blocking the compression process.