Windows Backup fails with Error Code 0x81000038

This problem usually occurs because the computer has a missing AppData path and hence the following registry key value is missing: To resolve this problem, do not include the AppData folder in the backup by using the Additional Location node. Instead, include the actual path of the AppData folder. To do this, follow these steps:

In Backup and Restore, click Change settings, select a backup destination, and then click Next.

Select Let me choose, and then click Next.

Expand Data Files, and then clear AppData folder under Additional Locations for each user account.

Expand Computer, expand the system disk, expand Users, and then expand each user account to reselect AppData.Follow the instructions.

Hope this helps.