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Access Denied after hotfix 324011 installed

Drinkingbird
Level 3
Liveupdate automatically installed this hotfix, and since then, every backup job is failing with error "The job failed with the following error: Access is denied."  The code is V-79-57344-33928.  It says it is failing on my system state.

"Backup- System?State V-79-57344-33928 - Access Denied. Cannot backup directory and its subdirectories."

The backup account has full admin access to everything, it has always worked before.  I also ran a permissions test and everything, including system state, passes.

It actually appears to back up fine, the job log shows the normal sizes I would expect to see and the system state bakup folder is 12 gigs which is the normal size, but not sure if one or more files is missing.

WIndows 2008 x64 Enterprise SP2
BEWS 12.5 with all latest SPs and updates
Backing up to directly connected E-SATA drive
GRT is enabled.
Synthetic backup and True Image Restore are enabled but they aren't used for system state (it gives a warning that it skipped those features, always has).
Same backup job backs up all files and Exchange 2007 fine, as well as shadow copy components, etc.
Fails on both full and incremental backups
3 REPLIES 3

Drinkingbird
Level 3
Anyone else seeing this?

Drinkingbird
Level 3

Peeling through the logs more, it is the Active Directory portion of system state that it is failing on, even though test runs say permissions and everything are fine.  I may try uninstalling this hotfix and setting liveupdate to manual.  Surprised more aren't having this issue, I must have a unique setup.