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I fixed this issue on my server.
For some reason, changing the reg key HKLM\SYSTEM\CurrentControlSet\Services\SQLBackupAgent by adding the -sqbdebug to the end fixed the problem.
I took the -sqbdebug to the end off the string and it still worked.
Not sure why this fixed it but give it a try. / comments
I fixed this issue on my server.
For some reason, changing the reg key HKLM\SYSTEM\CurrentControlSet\Services\SQLBackupAgent by adding the -sqbdebug to the end fixed the problem.
I took the -sqbd...