Annoying!! Three times in the last couple weeks I’m running into Windows 7 error on a system image backup. Also Windows 10 after an in place upgrade.
In explorer go to:
Delete any tasks (there were 2 for me):
Windows Backup Monitor
Then, and nobody out there seems to get this part, restart this service:
Background Intelligent Transfer Service
Now I was able to setup a system image backup and schedule it! Yay!