SQL backup exits status 1 - all child streams successful

The SQL-Server automatic backup job initiates the execution of the batch file which queues one or more application backup jobs.  If any application jobs fail and the NUMRETRIES keyword is specified in the batch file, then the failed jobs will retry and may be successful.  When this condition occurs, the automatic job will complete with a status 1 even if all of the application jobs have retried and completed with status 0.

This is normal behavior. The purpose of an exit status 1 under these circumstances is to alert the administrator that there was a potential issue with the overall backup, even though the end result was success. The administrator may choose to ignore the exit status 1, if the cause of the retry is acceptable in that particular backup environment.