Okay, my backups are running just fine on both servers. The Windows 2012 box is a Hyper-V server also. My problem is the amount of available backups on the Windows 2012 Server usually is between 1-2, while the Windows 2008 Server offers between 100-120.
The Windows 2012:
VSS Full Backup, System Reserve, C: (Full), E: (Incremental), Bare meta recovery, and system state.
I've noticed too that the Windows 2012 backup requires the complete C: drive, while the Windows 2008 Server does a "Full Server" backup, but does incremental backups of the C: volume, even though it is the system drive.