This has to do with the disk and the offset of the file system.  See this KB from Veeam - https://www.veeam.com/kb1893

Thanks ​@Chris.Childerhose 

But what is the workaround/fix/alternate step here to resolve the issue. 

Per-Machine backup files is already selected and has always been selected on all my repositories  and backups are running 100% fine. So why this now?

Unsure to be honest as it seems like a format is required to change the offset.  I would recommend contacting Support at this point to open a ticket up for better assistance.  Community is just users helping not support.  

One important thing i forgot to mention. This repository(windows volume) has “Compress Contents to Save Disk Space”  checked. Would this be an issue?

Yes that could be causing the issue for sure.  Try unchecking it if you can and see.

​@SysEng Here some Potential Causes an troubleshooting steps for the error:

File System Limitations:

• • File System Type: Using file systems like FAT32, which have limitations on individual file size, can cause this error when attempting to create or modify large files. NTFS is recommended for larger files and more robust features.
  • Fragmentation: Heavily fragmented disks, even with NTFS, can hinder the creation or expansion of large files, leading to this error.
  • Large File Record Segments (FRS): For very large files on NTFS, the size of the File Record Segments can become a limiting factor.

• Shadow Copy Issues (VSS):

  • If a backup or other operation relies on Volume Shadow Copy Service (VSS), the shadow copy storage area might be insufficient or experience high I/O load, causing the shadow copy to be deleted or fail to grow, leading to the asynchronous read/write operation failure.

• Storage Device Issues:

  • Logical Block Size Mismatch: When dealing with specific storage devices (e.g., Linux repositories with 4k logical block sizes), a mismatch between the reported and actual block size, or insufficient permissions for the data mover service to determine the correct block size, can lead to this error. 
  • Disk I/O Load: High disk I/O load can prevent shadow copies from growing or cause other operations to fail due to resource contention.
  • Network Storage Limitations: When using network shares (SMB/NFS) as backup targets, especially with certain NAS devices, limitations or known bugs can lead to this error.

Troubleshooting Steps:

• Verify File System Type: 

  Ensure the drive or partition involved is formatted with NTFS, especially if dealing with large files.

• Check for Fragmentation: 

  Defragment the disk or consider reformatting with a larger allocation unit size (e.g., 64KB) if dealing with very large files.

• Address Shadow Copy Issues:

  • Review shadow copy storage settings and ensure sufficient space is allocated.
  • Consider redirecting shadow copies to a volume with less I/O load.

• Investigate Storage Device Specifics:

  • If using a specific storage device, check its documentation for known issues or limitations, particularly regarding logical block sizes.
  • Ensure the relevant services have the necessary permissions to access device information (e.g., /sys/dev/block/{id}/queue/logical_block_size on Linux).

• Reduce Disk I/O Load: 

  If high I/O is suspected, try to reduce concurrent operations or consider faster storage.

• Review Network Storage Configuration: 

  If using network shares, verify the configuration and consider alternative protocols like iSCSI if recommended by the storage vendor.

• Run Disk Checks: 

  Use tools like chkdsk (Windows) to scan for and repair disk errors. 

hope that helps