Cannot Make System Image - VSS Error 12289

Whenever I try to create a system image or run recimg I get error 12289 and the backup fails. System protection is turned on and maximum space used is set to 20%. I have no third party backup software installed and this is a real not virtual machine.

PHP Code:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
- <System>
  <Provider Name="VSS" /> 
  <EventID Qualifiers="0">12289</EventID> 
  <Level>2</Level> 
  <Task>0</Task> 
  <Keywords>0x80000000000000</Keywords> 

[Code] ....

The provider looks OK but various writers are timing out.

PHP Code:
C:Windowssystem32>vssadmin list providers
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2013 Microsoft Corp.
Provider name: 'Microsoft Software Shadow Copy provider 1.0'
   Provider type: System

[Code] ....

What I've tried:

Fixed CAPI2 error using this command (updated for windows 10 based on Event 513 errors when setting a restore point or running backup - Microsoft Community )

PHP Code:
sc sdset MSLLDP D:(D;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;BG)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;SY)(A;;CCDCLCSWRPDTLOCRSDRCWDWO;;;BA)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;SO)(A;;LCRPWP;;;S-1-5-80-3141615172-2057878085-1754447212-2405740020-3916490453)(A;;CCLCSWLOCRRC;;;SU) 

Stop and start VSS servicesDelete old snapshots using vssadmin delete shadows /for=c: /all (there aren't any)Re-register VSS DLLsRe-install 9926