just an observation, it does not directly solve yuour current problems. (but also included a possible workaround)
BUT
years ago, when windows was not as stable, I either split my main drive into C: and D: drives (or, mre recently, have a c: SSD drive, about 250 g
and a d: drive, (unlimited space, at current prices)
I then install ONLY the main stuff, programs, etc, onto the c: drive, and use the d: drive (or the d: partition prior) for data.

THIS way, I could easily do image backups of the c: drive (space approx. 60 gig), for the essential core of the system. Then, I could set up separate schedules for the d: drive which had the data (currently 1TB or more)

this makes it a lot easier to store information and work with it in backups.

NOW, there IS a workaround for doing the exclusions.
IF you have the HDM 16 ADVANCED, you can do an IMAGE backup, and in the PARAMeTERS, select ADVANCED, and there is an option to ADD EXCLUDED FOLDERS (this is DIFFERENT from file/folder backup). you actualy have to TYPE in each folder and add it (the BROWSE is screwed up, won't select folders) (example, type in c:\working ), . you could then do a CORE IMAGE backup, then restore to the new drive, and then retrieve files from the old drive (mount it as USB, or something)

Anyway, hope the aboev helps