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As per the free edition design, you can configure only one full-featured backup job with a maximum of 3 VMs in it. However, you can configure any number of limited feature backup jobs from your backup server.

But from your portal account, it seems you have configured 2 full-featured backup jobs and that is the reason why the initial backup job is fine and the other full-featured jobs are failing

We suggest you delete the other full-featured backup jobs and add the VMs you want to backup to the initially created full-featured backup job by editing it.