MS has provided us the following Workaround (seems to work for us by now):
- go to C:\Program Files\Azure Workload Backup\bin\plugins\SQL and open PluginManifest.json
- Change the value of AllowCommunicationThroughNamedPipes from true to false
- Open TaskManager and Stop AzureWLBackupPluginSvc and AzureWLBackupInquirySvc. Restart AzureWLBackupCoordinatorSvc.
Just try and give Feedback if this is helping you. We will let you know if we have further information on the root cause.