Come on people, calm down. (I almost said "keep your eyes on the prize" lol)
I think most positions here are rationalize-able at the end of the day. "This sarks!" "it's happened before" "it's happened elsewhere" "it'll happen again" "it's unacceptable" ... all are fair.
I think the thing I'm most tired of are all the "me too" posts here lol. Although I understand that people think if more people complain, Apple will do something. Maybe. The main thing this thread is up against is that Time Machine is (probably) working for lots of people under 10.8.2... so in Apple's eye, they will see your troubles as anomalous.
Apple has released some horrible updates in the past ... mid 10.3.x saw battery life drop to 15 minutes on laptops, never to recover completely; late 10.4.x saw external USB drives destroy their own data; 10.5.x was the cluster-F of MobileMe (although they did a generally good job with 10.5's); early 10.6.x failed during update and required people to learn how to boot their Macs to safe mode (something only PC people ever had to do); and now 10.7.x and 10.8.2 killed Time Machine.
I suppose we can always say "well, at least we don't have viruses" (with a few exceptions, for those who remember) but that's little comfort.
I advise my clients not to update unless something is broken -- and always with the warning/caveat that some other things might not work afterwards. Even if a debacle happens once or twice in the 9 update cycles per Big Cat OSX, you're bound to get screwed by an update sooner or later...especially early on in the update cycle. And how spectacular a failure that these things sometimes trash our backup systems -- the one thing we actually need to function during updates.
But we shouldn't be surprised that updates don't always work right... especially on early OSX releases. Most of the time I only update a Mac OS to the Big Cat prior to the newest. In this case, they managed to screw up Lion and Mountain Lion at the same time lol. So it broke my rule... but luckily they acknowledged and fixed Lion backups pretty fast.
Otherwise, this is totally consistent Apple behavior... pre and post-Jobs. We can be frustrated but we can't be surprised. Does Apple "owe" us functional backups? Sure! Sort of! It's hard when they give you something and then take it away (or break it) but such is "progress." It's insulting for them to blame our setups (they've played both sides of this in the past vis-a-vis, for example, Adobe/Finder interaction.... and USB power.. tales for another time) This won't be the last time.
I do wonder about quality assurance at Apple... it's mindblowing that these things aren't caught prior to release. I probably oversee around 30-40 Macs (and as many Apple devices) in various environments and I see crap happen all the time, especially when I let people follow the Apple release plan. I had to "fire" a couple clients because they insisted on updating/doing things on Apple's "genius" schedule and I was tired of fixing those kinds of messes. (ironically, the Macs I built myself can run happily for months without restarting, just like the old days...kinda awesome but kinda sad). I could save Apple a lot of headache if they just sent me releases ahead of time Yeah right, like they'd listen to me.
So anyway, @LegalGeek did a pretty thorough job of listing out how to reformat your way to a new Time Machine (although there was some extra steps that would make your life more difficult) -- yes, it feels tragic to have to do this and it's not like a nice straightforward reformat but a deep clean install from scratch with no automation... worth doing in life, but lame to have to do in general; there are various network toggling/settings kludges that people have had luck with (wireless, wired, manual IP addresses); some third-party candidates (Dropbox interference?); and rolling back the drivers that control ethernet/networking (this is the most interesting one to me but also the most difficult to pull off... Even for local backups, Time Machine is interwoven with some networking drivers and I believe that rolling these back is the most intriguing solution... I just don't have an extra Mac lying around right now (or time) to make a busted Mountain Lion to test on but I will try to over the holiday)
Then of course we have the people chiming in about Time Capsules (a whole other clusterF** in itself due to radio interference with neighbors, other equipment like wireless phones, choosing channels, radio band; and just general Time Capsule time machine corruption [basing this off of experience with 5 Time Casules]) ... and finally the original Spotlight fixes that repaired things for 10.7.x users before Apple release the supplemental fix.
It's possible Apple will fix this, it's possible they won't. I've always used another program for backing up in addition to Time Machine because I've had TM fail just often enough to mean I have to double or triple up on backups. Let this force some good habits on us: redundant backups, resist updates, learn how to reformat your computer from scratch... etc. I do feel for non-tech people who have to suffer this but maybe their ignorance is sometimes bliss.
Remember kids, it's only 2012. We don't have hover cars and things don't always (often) "just work" ... proceed accordingly
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