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Azure backup failure (MARS) NO_PARAM (0xO86C5)

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Hi

I'm trying to set up an on premise physical server to back up via Azure backup to our online backup vault.  All our VM's are linked via the azure backup server and working fine for VM's. This server is physical so requires the MARS agent installing to back up selected files and folders.

The issue is that when I configure  and run a backup I get the error "Backup could not be started because of a virtual hard drive named NO_PARAM (0xO86C5) 

I have attempted all listed fixes and solutions found online.

1. Reinstalled and re-registered MARS agent and server to Azure backup vault

2. Turned off AV (Symantec)

3. Restarted virtual disk services 

3. Reconfigured the backup and removed original backup.

4. Installed and updated windows (Win server 2008 R2 SP1)

5. Restarted server 

Ran back up and failed with the same error again. 

1. Moved the scratch folder to local disk E: (None OS partition 56gb free space) 

Stopped azure backup services 

3. Updated reg key - from HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows Azure Backup\Config Path C:\Program Files\Microsoft Azure Recovery Services Agent\Scratch  ToE:\Azure Backup\Scratch

4. Updated reg key - HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows Azure Backup\Config\CloudBackupProvider\Backup\Scratch  To -D:\Azure Backup\Scratch  

5. Restarted azure backup services 

Reset up the backup and ran again. Failed with the same error again??

Attempted to move scratch folder again to E: drive (HP SAS storage) failed with the same error again.  

I hope to avoid calling in a 3rd party support consultant to assist as we are a charity based company and would like to minimize costs as much as possible. Any further advice or help resolve this issue will be greatly appreciated 

Kind regards 



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