I completed alllll the steps, including the in-place Windows install/upgrade. No change. Out of curiosity, I went into the backups to see what files DO get backed up. It leaves out my entire documents folder. It seems to back up the documents folder of the other real user. There are four profiles in C:\Windows\Users... the two I have made and actually want there plus Public and defaultuser100000. Nothing labeled "systemprofile." It's the two users I created that get backed up using Windows 7 Backup and Restore's default settings.
In other words, my user profile's documents folder is not getting backed up... and the backup is telling me that the documents folder of "systemprofile" (not my profile's name) is not getting backed up. So it seems to be considering my profile as "systemprofile."
I can also say that I did my very best to eliminate OneDrive from the PC, so I don't know if that's causing issues. I have NO desire to store in the cloud, but OneDrive is very insidious and inserts itself everywhere, so it took quite a few steps. I'm not sure if there is some relevance to that.
The last thing I did was customize the files in the backup, eliminating the "Libraries" it automatically chooses to back up and instead manually choosing the two user folders we store into. That seemed to allow for a successful backup, and it's ok for now. I know a lot of people would just think I should be happy and move on, but I'd rather have it working properly with default settings.
Any other ideas anyone? I've read something about custom folders, but I don't recall making a custom folder for "Documents."