Windows Server Backup Cannot Configure Backup Schedule

Just today I ran into an issue at a client with a new server. When we tried to configure backup on it we got the error:

Cannot configure backup schedule

It turns out that this occurs when a volume is over 2 TB. This was a new server and the disk configuration shipped from Dell included a 2.5 TB volume.

The solution was to shrink the volume in Disk Management and all was good.