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Error 1325: VBRCatalog is not a valid short file name

While upgrading a rather old (but very stable) Veeam Backup & Replication 6.1 installation to 8.0 Update 3 (with intermediate step to 6.5), I ran into a curious error. Right after the welcome screen, this error message Patrick Terlisten/ vcloudnine.de/ Creative Commons CC0 appeared. A closer look into the BackupSetup.log (you can find this log in the %temp% dir. Just enter %temp% into the Explorer address bar) resulted in this very interesting log entry: