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KB #240093: Cannot Restore from an encrypted SQL backup on a Compressed volume
|Creating an encrypted SQL backup on a compressed drive appears to function properly, however you will not be able to Restore from the encrypted backup.
|Encryptionizer currently does not support creating an encrypted SQL Backup on a compressed volume or directory.The Backup appears to execute properly. However, when you attempt to Restore from the encrypted backup, you will receive an error message informing you that it is not a properly formatted backup. You will get this error even if you copy the backup file to a non-compressed volume and Restore.
As a workaround, do not attempt to Backup to or Restore from encrypted backups on a compressed volume.
In addition, Microsoft does not support SQL Database files residing on a compressed volume:
Please note that Encryptionizer does support the encryption of Compressed SQL Backups generated by the Native SQL Backup utility.