With apologies to Nat King Cole :)
Database backup failing
665(The requested operation could not be completed due to a file system
limitation) [SQLSTATE 42000] (Error 3202)
Hey, customer...let not put backups on O/S compressed drives please.
Oh...and why do you have your MDF/LDFs on the same drive...also compressed?
Resolution - punt it back to them and tell them SQL Server on compressed drives is unsupported config by Microsoft and by me. Uncompress and expand or add a drive and uncompress.
Sheesh. How many worst practices can you get in one server?