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?
Who is Participating?
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.
Is the command run manually or automatically/scheduled?
If it is manual do you run it from an elevated command prompt?
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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Remove the Windows Server Backup Feature (and confirm). Once done, add the Feature again.
ByteCafeSupportAuthor Commented:
I had tried removing feature and adding back yesterday with no change. I did not reboot between.
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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