Acronis Cyber Protect Cloud, Acronis Cyber Backup: Backup fails with "Operating system error: A device attached to the system is not functioning" and Event Code 8193

Backup fails with:

Operating system error: A device attached to the system is not functioning

In Windows Application logs, you see this error:

Volume Shadow Copy Service error: Unexpected error calling routine ConvertStringSidToSid(S-1-5-21-4148555394-1870526016-119506688-1000.OLD). hr = 0x80070539, The security ID structure is invalid.