Windows Server Backup unable to backup anything but system state

I've got a Windows Server 2012 Essentials server that backup fails on start. I am however able to run a system state backup with command:

wbadmin start systemstatebackup -backuptarget:D:

If I try to backup C: drive with this command:

wbadmin start backup -backuptarget:D: -include:C:"

It fails right at start with wbadmin giving this output at the end:

The Windows Backup engine could not be contacted. Retry the operation.
The RPC server is unavailable.

The only Event Viewer errors I have to go by are:

Application log - Application Error 1000

Faulting application name: wbengine.exe, version: 6.2.9200.16384, time stamp: 0x50108cb6
Faulting module name: ntdll.dll, version: 6.2.9200.16579, time stamp: 0x51637f77
Exception code: 0xc0000374
Fault offset: 0x00000000000ebd59
Faulting process id: 0x5c4
Faulting application start time: 0x01cea4b71f6b1c27
Faulting application path: C:\Windows\system32\wbengine.exe
Faulting module path: C:\Windows\SYSTEM32\ntdll.dll
Report Id: edb56003-10aa-11e3-9400-6c3be55044f8
Faulting package full name:
Faulting package-relative application ID:

System log - Service Control Manager error 7031

The Block Level Backup Engine Service service terminated unexpectedly.  It has done this 1 time(s).  The following corrective action will be taken in 120000 milliseconds: Restart the service.

Any thoughts on this?
ByteCafeSupportAsked:
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ByteCafeSupportConnect With a Mentor Author Commented:
We are migrating this client away from Windows Server Backup.  It is not working for us and there are other solutions available that function better.
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strivoliCommented:
Is the command run manually or automatically/scheduled?
If it is manual do you run it from an elevated command prompt?
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ByteCafeSupportAuthor Commented:
I get the same thing when scheduled through Windows Server Backup MMC or from command line. When running in command prompt, it is an administrative command prompt.
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strivoliCommented:
Remove the Windows Server Backup Feature (and confirm). Once done, add the Feature again.
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ByteCafeSupportAuthor Commented:
I had tried removing feature and adding back yesterday with no change. I did not reboot between.
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ByteCafeSupportAuthor Commented:
It is no longer an issue that we need resolves as we are going away from Windows Server Backup as a backup solution.  It has eaten up too much time to be worth finding a solution for.
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