So, like so many others, upgrading to Tahoe totally ruined the ability to make TM back ups which have functioned without issues for as long as I can remember, across a number of different Macs and drives.
In my case the back up of my 2020 14" Macbook Pro M1 is set to take place on a NAS or home server - a late 2012 MacMini running Catalina with an attached JBOD raid consisting of three 1TB discs (one internal and two connected via usb).
My MBP has 1TB of storage and around half of that is free, so 500GB should fit into 3TB nicely and has done so up to this point. However, I soon realised I could not continue on the old back ups made prior to Tahoe, but had to erase the NAS and start over. At first the attempted backups would fail as the first back up would never finish. It would also not just add to what was already backed up but keep adding to the data and eventually filling up the discs. Also, I would not see a "sparsebundle" file created but instead a folder with my name!?
Numerous attempts to delete the recipient discs and recreate the RAID using APFS protocol, but it still followed the above pattern.
After upgrading to Tahoe 26.3.1 I read the suggestion on here from rahulj123 and followed that. At first it seemed like it finally worked. An actual sparsebundle was created and most of the data was transferred, but again it never finished, and whenever I try to start TM back up again to finish the initial back up, the connection with the server is lost.
To the best of my knowledge, it's not a network issue, as everything else works fine, including screen sharing with the MacMini (which has worked throughout).
So there has to still be something with the OS that renders the TM feature unusable, and it's driving me to the brink of discarding it altogether.
This, for a company like Apple that prides itself in having systems that are both plug-and-play and work by and large without hassle, is a major setback.