The error 0x80780049 (ID 517) reported by Windows Server Backup may be due to running a Windows Server 2012 (incl. R2) VM on a Server 2012 (R2) host.
A much better solution is to use BackupChain instead of Windows Server Backup, for many reasons, such as the additional feature set.
To fix your installation on Windows 8 or Windows Server 2012 install hotfix KB2918371:
On Windows 8.1 or Windows Server 2012 R2 install the hotfix KB2919355:
Steps to reproduce this behavior in Windows Server Backup: On a Windows Server 2012 Hyper-v server and a VM running Windows Server 2012
- Run Windows Server Backup on the host
- Select Backup Schedule
- click Custom on the Select Backup Configuration tab
- Select Add Items, select host component and the VM
- You then reboot the host.
The scheduled backup then fails with backup ID 517 and error 0x80780049.