Discovered a Major Bug in Quicken 7.6.1 - Encryption produced corrupt backup files

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My Quicken Backup file is about 1.5 GB. If I create a backup manually, it works fine. However, if I encrypt it with a password, it produces a corrupted MB file. I then removed the encryption, and automatic backup now works.

I have been working with Quicken support, and they could not find any other error in my setup.