Error during auto backup

Presumably not exactly the same, as you deleted first bad file. Did it maybe find a different bad file?
If so, it’s probably time to actually go look for all of them, e.g. with the test command as suggested.
You can look at the latest file name to see if it’s also one of the old files that compact tried to read in.

EDIT:

You can also take the name and verify that it won’t decrypt, using either of the methods given before.

EDIT 2:

AES Crypt GUI is easier but you have to install it. Example of SharpAESCrypt.exe CLI usage is here.
Look in the installation folder for its location. There’s also a utility-scripts folder with a PowerShell tool
which could be used, but I don’t know that it’s a whole lot simpler to run than using the test command.

And of course there’s also the start-fresh idea, but no guarantees that pCloud will work right with that.