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The System.ArgumentException is reproduced when I add the multiple-instance support. And I also find the location of the exception.
You could refer to Background tasks and multi-instancing part of the Create a multi-instance Universal Windows App, and get the information that out-of-process background tasks support multi-instancing and in-process background tasks do not support multi-instancing.
In my side, when I register an in-process background task, the System.ArgumentException is thrown. When I register an out-of-process background task instead of the in-process background task, the app could run successfully.
Based on the code provided by you, it should be an in-process background task because BackgroundTaskBuilder.TaskEntryPoint Property is not set for the BackgroundTaskBuilder instance. You could try to replace your in-process background task with an out-of-process background task.
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