As per the SMEdump.txt the following error is seen:
* 2013-11-16T09:09:38.0670000Z VdsLoader(1476) Context: RESULT_CLASS : RESULT
Argument.cpp(211) Function: Argument::Argument
Warning 80070422: The service cannot be started, either because it is disabled or because it has no enabled devices associated with it.
* 2013-11-16T09:09:38.0670000Z VdsLoader(1476) Context: RESULT_CLASS : RESULT
VdsLoader.cpp(237) Function: VdsLoaderThreadFunc
e0050001
1: Warning 80070422: The service cannot be started, either because it is disabled or because it has no enabled devices associated with it.
Error WINOS_SUPPORT_ERROR_VDS_LOAD_FAILED (E0050001): Failed to load VDS service.
Warning 80070422: The service cannot be started, either because it is disabled or because it has no enabled devices associated with it.
(UMI:V-*-5-1)
The Virtual Disk Service (VDS) service is disabled.
Enable and start the VDS service and restart system recovery services by following the steps below:
1. Go to Start > Run > and type: services.msc then press Enter.
2. If the Virtual Disk Service is has a status of "Disabled", right click on the service and click on Properties > Enabled.
5. Start the Virtual Disk Service service.
7. Restart the Symtrack service and System Recovery service.
8. Attempt to create a backup job.
For more information on VDS please check the below link
https://technet.microsoft.com/en-us/library/cc778187(v=ws.10).aspx