Hello there,
We recommend you perform the following validation steps, before you start troubleshooting System State backup:
Ensure Microsoft Azure Recovery Services (MARS) Agent is up to date
Ensure there's network connectivity between MARS agent and Azure
Ensure Microsoft Azure Recovery Services is running (in Service console). If necessary, restart and retry the operation
Ensure 5-10% free volume space is available on scratch folder location
Check if another process or antivirus software is interfering with Azure Backup
https://learn.microsoft.com/en-us/azure/backup/backup-azure-system-state-troubleshoot
Hope this resolves your Query !!
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