The MS Server Role Service - "File Server VSS Agent Service" is not installed on the file server where the SMB share resides. Even though most all Hyper-V features are apparently behaving as expected, this service is necessary for backup and restore tasks.
This allows the Hyper-V host to create a snapshot of the volume where the SMB file share resides.
Install the File Server VSS Agent on the file server where the SMB share resides.
After the service has installed, re-run the failing Hyper-V task to verify that the issues is resolved.