I contacted support and they confirmed the issue too, so I asked if there was a workaround and this was the reply…
Unfortunately, there is not a work around at the moment. However, with the soon release of the new version the bug will be fixed.
No workaround? Hogwash
I was also told no ETA on new version… oh please you can do better, Avast. Make a guess. 1 week, 1 month, 1 year?
So the problem I experience is the system state backup errors while enumerating a list of files to backup and gets part-way into a backup of a poorly enumerated path and fails with Error in backup of C:\windows\systemroot\ during enumerate: Error [0x8007007b] The filename, directory name, or volume label syntax is incorrect.
The workaround I suggest for anyone experiencing this problem is to uninstall v17.2 and install an earlier version. I tested with v12.3 and system state backup still works on my virtual test host. Make sure if you do this that the host is using a cloud settings template that does not perform automatic program updates or it will just upgrade again If system states still do not work for you, then there might actually be another problem with the host which is not possible to diagnose in this forum. Remember, always test on non-production first for your specific environment!
If you don’t have an earlier version and cannot obtain one from support (usually they can supply if you need it) and cannot wait for a new version, the other workaround I found is modifying the HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services registry. Because of the dangers here, I have opted not to provide specific instruction on how to change this. Doing an incorrect backup and edit of this part of the registry can make your system unbootable and is for experienced systems admins only. You have been warned, and I take no responsibility for any losses you might suffer by using the information I provide here! You’ll also need to reboot for this registry edit to take effect and so downgrading the program version is just as disruptive on a production host and is why it is probably the better (supported) choice.
Here are the following keys that I discovered cause the system state to fail:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\aswbidsh
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\aswblog
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\aswbuniv
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\aswRvrt
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\aswVmm
You either need to change the ImagePath values to have a fixed path before the filename (eg C:\windows\system32\drivers\aswbidsha.sys), or, a more correct fix, to change the data type of the current ImagePath value from REG_SZ by deleting the value and recreating it as a REG_EXPAND_SZ.
I’m no expert and can’t explain why loading on boot (ie, the value Start=0) does not have a problem with the current REG_SZ but system state does. And so for that reason a program downgrade is still my preferred choice as I expect when the fix is released in an upgrade it is going to upgrade properly.
I hope someone finds this useful.