Exclamation Mark on All Source Folders

Can’t access some folders, despite service running as system user
should dispel that standalone comment, although you did try further tests.
If you wish to (carefully) try a SYSTEM Command Prompt, recipe is there.

Also be aware that ACE ordering in an ACL might matter, as discussed at

How the System Uses ACLs

is an example of a test that I would hope would show an accurate answer.
It looks like Duplicati code above doesn’t look much at access error detail.

Process Monitor might give a better view of exactly what Windows rejects.
Note that the view may vary with altitude (where in the stack got watched):

Change Altitude of Process Monitor (ProcMon)