I appreciate the response, but please re-read my post. Backup DOES WORK! It just does not work Automatically without throwing the error. I can then go in system settings and open the volume in the Time Machine section and right click and manually complete backup and it works. So backup is NOT BROKE - the process when the machine is idle and the screensaver is running causes the error. My keyboard is hard wired USB-C.
I can run a command in terminal and I can see the error in the logs, but the error does not point to any certain file or drive. Here is the output of running a command to look for the time machine logs:

Here is the text in case it is hard to read. It reflects a device locked, but I sure don't see where it reflects on WHAT device is locked!
Last login: Tue Feb 4 11:13:59 on console
apn@Alans-Mac-mini ~ % log show --info --style compact --predicate '(subsystem == "com.apple.TimeMachine")' --last 96h | grep "Operation not permitted"
2025-02-11 05:40:19.107 E backupd[262:57cc81] [com.apple.TimeMachine:FileProtection] Failed to acquire device lock assertion for '/Volumes/com.apple.TimeMachine.localsnapshots/Backups.backupdb/Alan’s Mac mini/2025-02-11-053917/Data/Users/apn/Library/Metadata/Assets/com.apple.MobileAsset.SpotlightResources.plist' (assertion state: <dropped>), error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 06:39:32.984 E backupd[262:583da3] [com.apple.TimeMachine:FileProtection] Failed to proactively acquire device lock assertion on lock state change (deviceIsLocked), assertion state: <dropped>, error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 06:40:24.610 E backupd[262:583da5] [com.apple.TimeMachine:FileProtection] Failed to acquire device lock assertion for '/Volumes/com.apple.TimeMachine.localsnapshots/Backups.backupdb/Alan’s Mac mini/2025-02-11-063925/Data/Users/apn/Library/Metadata/Assets/com.apple.MobileAsset.SpotlightResources.plist' (assertion state: <dropped>), error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 07:39:42.943 E backupd[262:58b15f] [com.apple.TimeMachine:FileProtection] Failed to proactively acquire device lock assertion on lock state change (deviceIsLocked), assertion state: <dropped>, error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 07:40:39.393 E backupd[262:58b114] [com.apple.TimeMachine:FileProtection] Failed to acquire device lock assertion for '/Volumes/com.apple.TimeMachine.localsnapshots/Backups.backupdb/Alan’s Mac mini/2025-02-11-073933/Data/Users/apn/Library/Metadata/Assets/com.apple.MobileAsset.SpotlightResources.plist' (assertion state: <dropped>), error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 08:40:11.333 E backupd[262:5925a7] [com.apple.TimeMachine:FileProtection] Failed to proactively acquire device lock assertion on lock state change (deviceIsLocked), assertion state: <dropped>, error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 08:41:07.770 E backupd[262:5925a4] [com.apple.TimeMachine:FileProtection] Failed to acquire device lock assertion for '/Volumes/com.apple.TimeMachine.localsnapshots/Backups.backupdb/Alan’s Mac mini/2025-02-11-084001/Data/Users/apn/Library/Metadata/Assets/com.apple.MobileAsset.SpotlightResources.plist' (assertion state: <dropped>), error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 09:40:58.662 E backupd[262:599985] [com.apple.TimeMachine:FileProtection] Failed to proactively acquire device lock assertion on lock state change (deviceIsLocked), assertion state: <dropped>, error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 09:41:57.918 E backupd[262:5998e5] [com.apple.TimeMachine:FileProtection] Failed to acquire device lock assertion for '/Volumes/com.apple.TimeMachine.localsnapshots/Backups.backupdb/Alan’s Mac mini/2025-02-11-094047/Data/Users/apn/Library/Metadata/Assets/com.apple.MobileAsset.SpotlightResources.plist' (assertion state: <dropped>), error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 10:41:02.761 E backupd[262:5a1491] [com.apple.TimeMachine:FileProtection] Failed to proactively acquire device lock assertion on lock state change (deviceIsLocked), assertion state: <dropped>, error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
2025-02-11 10:42:03.582 E backupd[262:5a1494] [com.apple.TimeMachine:FileProtection] Failed to acquire device lock assertion for '/Volumes/com.apple.TimeMachine.localsnapshots/Backups.backupdb/Alan’s Mac mini/2025-02-11-104051/Data/Users/apn/Library/Metadata/Assets/com.apple.MobileAsset.SpotlightResources.plist' (assertion state: <dropped>), error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
apn@Alans-Mac-mini ~ %