I made an astounding discovery this morning.
I have an hp ML350 server with three RAID 1+0 drive arrays that offer three logical disks for use. There is no clustering or SAN involved, just three simple disks. The first is used for the OS, and the other two to hold VHD files for Hyper-V.
I installed Windows Server 2012 R2 fresh with Hyper-V and attempted to use Windows Server Backup to backup the entire server to an external USB drive. The Hyper-V application portion of the backup constantly failed. The Hyper-V VSS Writer returned state
5, Failure Result 80042336, with the Component Message'Could not create the backup checkpoint...; the system cannot find the file specified."
After a 5 day expedition through permissions, registered DLLs and a ton of other stuff, I found the problem.
The VHD files CANNOT be located in the root directory of local disk drives. They MUST be in a folder off the root directory. I confirmed this through multiple A-B tests with the files in the root of a drive, and then in a folder off the root.
Oddly enough, the permissions on the root folder are identical to the folder off the root, so that's not the problem.
On Windows Server 2008 R2 Standard I constantly located my VHD files on the root folder of a drive with no issue.
I hope this spares someone a lot of trouble!
Added update: I should also have said that the four VMs were all shutdown (offline) during the failures. So this had nothing to do with VM-internal snapshots or Integration services. This amounted to a failure of a straight file backup, some of which were related
to Hyper-V. And, I believe the REAL cause was the .avhd file (snapshot) could not be created in the first place, and THAT was the file the writer couldn't find.