A customer will go to the backup log under Settings>Logs>Backup log and will find this entry:
This is a cosmetic issue. The nightly backups are taking place. This issue is slated to be resolved in a future release.
Resolution to verify that the nightly backup is actually taking place:
1. Go to Settings>ControlPanel>Backup Settings.
2. Under Backup area look at the database entries.
3. Take a look at the time stamp of the backup files and find that indeed, the nightly backup is taking place.