I am having this same problem. I have Paragon Hard Disk Manager 15. In the above dialog, there is no option to select "Paragon Hot Processing." It is hardwired to use "Microsoft Volume Shadow Copy Service." When run it always has the same error as specified in this thread. It says to look at the log files and (I assume) the Event Manager for VSS and Application errors. When I attempt to used the "View Log Files" function it reports the previously discrbed error. I can go into the program director and open all the log files without any problem.

I did run a successful backup image on another Windows 10 machine and it had no problem opening and reading the log file that it, itself, had created.