Same problem here. I just received a new LENOVO x270 on which I did a fresh Win10-Pro install on an SSD.

Windows Update then installed 1703 (Windows 10 Creators Update) via windows update (OS Build 1506.332)

I own: Paragon Hard Disk Manager, version 10.1.25.813 (16.09.15 ) Suite

When using Smart Backup (Legacy Features enabled) VSS technology is failing with error: 0x1112

It makes 3 attempts and fails all 3 and then runs a "load a DOS version at bootup" which I assume works but is much less convenient (I think it's slower too).

I use BR15 on my other computers (4 desktops and one other laptop) which all still run Win10 v1607.
As they're older systems MS has not installed 1703 when doing system updates.
VSS works fine on them all.

Thank you for any info on what might need to be turned off / disabled / changed in 1703 to make things work as I'm used to.

Or is there an upcoming BR15 Creators Update/Patch that fixes this?