Cloud Backups Failing: VSS Copy Service Error

I have a Windows 11 Pro workstation that I am trying to backup to the Cloud using Cove N-Able. The backup is failing on the system state backup section with an insufficient storage VSS error. The output from :

C:\Windows\System32>vssadmin list shadowstorage
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2013 Microsoft Corp.

Shadow Copy Storage association
   For volume: (C:)\\?\Volume{47caa634-56ca-473c-9f9b-bfb08e85de45}\
   Shadow Copy Storage volume: (C:)\\?\Volume{47caa634-56ca-473c-9f9b-bfb08e85de45}\
   Used Shadow Copy Storage space: 0 bytes (0%)
   Allocated Shadow Copy Storage space: 0 bytes (0%)
   Maximum Shadow Copy Storage space: 55.7 GB (25%)

This shows that there is plenty of vss shadow storage available on the workstation.

When the backup runs I am getting an 4001: Volume Shadow Copy Service error: "Cannot find diff areas for creating shadow copies. Add at least one NTFS drive to the system with enough free space. The free space needed is at least 320 Mb for each volume to be shadow copied"

The main C:\ partition is NTFS and has 74GB of free space. Are there any ideas behind this Event Code that will help me get a valid cloud backup? 

Thing to note: Local backups are running without issues.