Almost all Windows OSs except home editions support file folder level encryption. You may be thinking of full disk encryption. It's possible the account that turned on encryption on the files is a different account than you're using for the service account for backup. Easiest way is to find the files and turn off encryption if you don't need it turned on. But if that doesn't work for you then I'll try to dig up an article that will help explain the issue.

https://help.cloudberrylab.com/cloudberry-backup/backup/back-up-files-folders

I already ran the service as a admin with full permissions and that didn't fix the issue.

Can you locate the files or folders and disable encryption? If not, check this article and the one linked at the bottom of the page. https://social.technet.microsoft.com/Forums/windows/en-US/c79e03ca-4ddb-4b0c-86b4-9acd46aed948/sharing-efs-folder-with-second-account?forum=winserversecurity

Is there anyway to back it up without disabling encryption?

Using the methods described in the posts should work. You effectively grant the account performing the backup access to the certificate used for encryption. Or you can try using the same user account for the backup service that was used for encryption.

Also found this CloudBerry article: https://kb.cloudberrylab.com/standalone-backup/general/how-to-backup-efs-encrypted-files-with-system-account

I already read and tried that article with no success.

Based on another post, this may be a known issue. The best way to tell is to send us the logs for review. Please reference this post when submitting and ask the logs be sent to Matt as he's reviewing another similar case. Thanks.

This looks like a known issue that is to be addressed in the 6.1. I'm still waiting on a response from the team on the date for release and any known work-arounds. I'll reply back tomorrow with an update.

Any updates? Experiencing same issue where encrypted files were backed up fine with earlier versions, but not with v.6.0.2.28. Would like to avoid the local system account workaround. Thx

Glen, are you sure the encrypted files were backed up in previous versions. The way EFS works is the account backing them up must have the proper Windows privileges to do so if the account that encrypted the files is not the same account being used for backup.