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This was resolved using the following forum post.
https://forum.red-gate.com/discussion/79986/sql-backup-error-sql-backup-could-not-access-hkey-local-m
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I remoted to the server using the service account credentials and I was able to access the registry keys using regedit but I received the same error message when I tried the GUI.
I also received the same error using T-SQL.
The service account is a Local Admin on the server.