One of the most common Exchange-related VSS errors is error code 1296, which states, "Exchange VSS Writer Failed with Error Code 1296 when preparing components (databases) for backup." This problem occurs as a result of having circular logging enabled.
You can disable circular logging by opening the Exchange Management Shell and entering the following command:
Set-StorageGroup -Identity "First Storage Group" -CircularLoggingEnabled $false
This was first published in April 2013