FileVault blocking macOS Updates and Time Machine Backups

Hi,

8-weeks ago I enabled FileVault on iMac Late 2013 with macOS 10.15.7. It took a few days, however it showed to have completed the encryption.

Preferences > Security & Privacy > FileVault indicates "FileVault is turned on for the disk" and "a recovery key has been set". "Turn Off FileVault..." is grayed out (with locked or unlocked "make changes"), which I read seems to have happened to others.

I am unable to install MacOS updates and also make Time Machine backups. I am also unable to re-install macOS from Recovery because it shows disk is busy with encryption. The time machine error is "Time Machine did not back up because FileVault was encrypting or decrypting a disk. Backups will resume once FileVault finishes." The update errors are requesting that I use disk utility to reformat as APFS, however I confirm all drives are APFS (see details below).

I have tried Disk Utility > First Aid in both standard and recovery (command+R) modes on both HD and HD Data volumes, Container, and Fusion Drive. I have tried this many times- never finding any error reports. Both HD and Data Volumes show "APFS (Encrypted)".

Terminal > "fdesetup status" indicates FileVault is On.

Terminal > "diskutil apfs list" indicates Data and System disks are FileVault Yes (Unlocked). Preboot, Recovery, and VM disks are File Vault No. (see details below)

After 8-weeks, I can't believe it still needs time to complete. All indications are encryption is done. Is there a way to check another way (e.g. terminal, console logs, etc.) to give a clue what might be hung up?

I appreciate any help.

Details

OurDocuments@Macintosh-2 ~ % diskutil apfs list

APFS Container (1 found)

|

+-- Container disk2

====================================================

APFS Container Reference: disk2 (Fusion)

Size (Capacity Ceiling): 1121118199808 B (1.1 TB)

Capacity In Use By Volumes: 1075276959744 B (1.1 TB) (95.9% used)

Capacity Not Allocated: 45841240064 B (45.8 GB) (4.1% free)

|

+-< Physical Store disk1s2

| -----------------------------------------------------------

| APFS Physical Store Disk: disk1s2 (Secondary, Designated Aux Use)

| Size: 999995129856 B (1000.0 GB)

|

+-< Physical Store disk0s2

| -----------------------------------------------------------

| APFS Physical Store Disk: disk0s2 (Main, "Faster" Disk Use)

| Size: 121123069952 B (121.1 GB)

|

+-> Volume disk2s1

| ---------------------------------------------------

| APFS Volume Disk (Role): disk2s1 (Data)

| Name: Macintosh HD - Data (Case-insensitive)

| Mount Point: /System/Volumes/Data

| Capacity Consumed: 1045556420608 B (1.0 TB)

| FileVault: Yes (Unlocked)

|

+-> Volume disk2s2

| ---------------------------------------------------

| APFS Volume Disk (Role): disk2s2 (Preboot)

| Name: Preboot (Case-insensitive)

| Mount Point: Not Mounted

| Capacity Consumed: 154042368 B (154.0 MB)

| FileVault: No

|

+-> Volume disk2s3

| ---------------------------------------------------

| APFS Volume Disk (Role): disk2s3 (Recovery)

| Name: Recovery (Case-insensitive)

| Mount Point: Not Mounted

| Capacity Consumed: 528961536 B (529.0 MB)

| FileVault: No

|

+-> Volume disk2s4

| ---------------------------------------------------

| APFS Volume Disk (Role): disk2s4 (VM)

| Name: VM (Case-insensitive)

| Mount Point: /private/var/vm

| Capacity Consumed: 8598589440 B (8.6 GB)

| FileVault: No

|

+-> Volume disk2s5

---------------------------------------------------

APFS Volume Disk (Role): disk2s5 (System)

Name: Macintosh HD (Case-insensitive)

Mount Point: /

Capacity Consumed: 11549794304 B (11.5 GB)

FileVault: Yes (Unlocked)