We installed the Azure Backup Agent on our DPM 2012 R2 server and registered the server with Azure. Every online backup is failing with the error in the screen shot.

Hi,

Not much to go on here, open the C:\Program Files\Windows Azure Backup Agent\Temp\CBEngineCurr.errlog and search on the below string.  There should be some errors detailing the failure right before this.

Backup Progress: Failed 

There is so much in that file... here is a snippet.

Hr: = [0x80070002] CreateFile failed for C:\Program Files\Windows Azure Backup Agent\Scratch\748adfb5-243f-44be-a5bc-87f69befec05.FRNToFileNameList.BackupProgress, m_fRead True
Page size to be used: 4096
Failed to read MaxBufferSize from registry. Using default size: 262144
CFixupReaderIterator::SetFileSystemFlags (0x0) called
CPruningIterator::GetNextFile - File [\\?\Volume{13a11272-f575-11e3-80c5-001dd8b71ca4}\System Volume Information\EfaData\SYMEFA.DB] returned for deletion
Parameter: [0x80070020], FilePath = \\?\Volume{13a11272-f575-11e3-80c5-001dd8b71ca4}\System Volume Information\EfaData\SYMEFA.DB
Failed: Hr: = [0x80070020] : CreateFile failed \\?\Volume{13a11272-f575-11e3-80c5-001dd8b71ca4}\System Volume Information\EfaData\SYMEFA.DB with error :32
Failed: Hr: = [0x80070020] COnlineSubTask::UpdateStatus => hr
Last completed state for Ds Id (1126075830498143381) is 18
Ds Id (1126075830498143381) failed. DLS: 0 HRESULT: 0x80070020
Failed: Hr: = [0x80070020] SetupReplicationForReplica unsuccessful for replica id ({748ADFB5-243F-44BE-A5BC-87F69BEFEC05}) Volume (\\?\Volume{c8858a55-f43a-11e3-80c4-001dd8b71ca4}\))
<--CBpAsyncWorker::DoWork
==>CBpAsyncWorker::MonitorWork
START: OP:EBP_OS_ESTIMATING_SIZE TIME:130474251748427755
==>CKeyManagerCatalogProvider::GetCurrentEncryptionKey
==>CKeyManagerCatalogProvider::GetAsyncProvider
==>CKeyManagerCatalogProvider::LoadProxyModule
<--CKeyManagerCatalogProvider::LoadProxyModule
<--CKeyManagerCatalogProvider::GetAsyncProvider
Executing web service call | Params: {ServiceInterface = Microsoft.Internal.CloudBackup.Common.ROCatalog.Interface.IROCatalogExternalChannel}{Description = GetCurrentEncryptionKey}{TargetEndpoint = https://pod01-prot1.wus.backup.windowsazure.com/ROCatalogExternalService.svc}
Setting RequestId header for outgoing request | Params: {RequestId = c44cf3f4-61f1-476f-8fd7-8d51074abef2}{WorkitemId = 0f1199bc-996d-4f6e-ae11-90f1299bdd70}{TaskId = 556cef8a-044a-4541-8cfe-ff505e36e254}
Finished web service call | Params: {ServiceInterface = Microsoft.Internal.CloudBackup.Common.ROCatalog.Interface.IROCatalogExternalChannel}{Description = GetCurrentEncryptionKey}{TargetEndpoint = https://pod01-prot1.wus.backup.windowsazure.com/ROCatalogExternalService.svc}
CKeyManagerCatalogProvider::GetCurrentEncryptionKey:Read current encryption key from catalog.KeyId returned:[1125967808839423515]
<--CKeyManagerCatalogProvider::GetCurrentEncryptionKey
CKeyManager::ValidateCurrentKeyWithService: Key Verification Successful
END: OP:EBP_OS_ESTIMATING_SIZE TIME:130474251754209129
<--CBpAsyncWorker::MonitorWork
==>CBpAsyncWorker::DestroyWork
<--CBpAsyncWorker::DestroyWork
<--CBpAsyncWorker::DoWork
<--CBpBackupAsync::TransferData
Backup Progress: Data transfer finished
Failed: Hr: = [0x80070020] Backup Progress: Failed

Hi,

This error matches a known problem posted here where Symantec Endpoint Protection is creating a database file SYMEFA.DB on the .vhd used for backup and it cannot be deleted.

That seems to have been the problem. Uninstalled SEP, rebooted, and successfully backed up online.

Now if Symantec can just get it fixed...

Hi,

We are investigating this issue to see if we can code around the problem.  If this is doable, we will publish a fix in a future agent patch.  In the meantime, unfortunately, the only know workaround is to uninstall the Symantec antivirus software which we know is undesirable.  

UPDATE
=====

I am using version 12.1.5 of Symantec Endpoint, which seems to be the latest (released during late September, 2014). I looked at their release notes. They seem to claim that they addressed an interoperability issue with our Backup product:

http://www.symantec.com/business/support/index?page=content&id=TECH224706
Windows Backup of Hyper-V virtual machine fails

Fix ID: 3234743
Symptom: Windows Backup of a virtual machine fails on a Hyper-V host. The backup fails with the following error in event viewer

Application logs:
Event ID 517: "The backup operation that started has failed with following error code '0x80070020' (The process cannot access the file because it is being used by another process.). Please review the event details for a solution, and then rerun the backup operation once the issue is resolved."

Solution: Modified the SymEFA.sys driver to handle a scenario where the Microsoft API CreateFile() could fail during backup.

It seems like they have addressed the issue, can anybody that previously reported this issue please re-tect with the version 12.1.5 of Symantec Endpoint ?

Updating to Symantec Endpoint Protection 12.1.5 solved our issue.  Online recovery point creation is working now.  Thanks