Inability to create local backups ATI 2016

Trying to backup a single partition Win 7 laptop a to a Ubuntu box without success.
I started from scratch:
Ran Repair ATI from windows control panel.
Made sure their was sufficient space on target HD to fit backup file.
Created NEW backup instructional set from ATI program.
Very simple scheme: Incremental backup to run daily, keep no more then 3 backup sets. (backup file is approximately 125 GB going to a 2 TB hard drive. Both machines hardwired to local LAN and have no problems sharing and accessing each others files.
No email notifications or advance options.
Hit Start Backup.
After running all night I wake up to:
FAILED TO EXCLUSIVELY ACCESS A BACKUP FILE DURING CONSOLIDATION. MAKE SURE FILE IS NOT OPEN IN ANOTHER APPLICATION.

Upon looking in the target machine folder I have 3 116.5 GB folders created overnight :
name_full_b28_s1_v1.tib Oct 17
name_full_b28_s1_v1.tib 01:16
name_full_b29_s1_v1.tib 05:44
and 6 _inc_b28_s2, s3 s4, etc files of various MB each

Nothing is open on either machine.
I will note that I also have a backup to ATI Cloud option set up but it is not scheduled to go at the same time or same part of the week.

The local backups have been plagued with issues. I even tried a simple full backup once a day to a USB drive last week. It ran itself 4 times over night and didn't stop until the target disk ran out of room.

What gives?