So I backed up my iphone 6+ locally with itunes and wiped my phone. When I went to restore it, itunes asked for my password (backup encrypted) and it runs about 50% through the restore and then said corrupted or incompatible backup and fails. I then had to buy a 3rd party utility to pull the pictures from my encrypted backup. The things I could not restore were icon layout, passwords for all apps, stored data for apps, etc etc etc. All in all about a 3 hour ordeal to kind of get me back to where I was before the wipe.
My guess is something in the backup was bad and itunes just stops without giving you the option to skip the restore of only the bad data on the backup. The 3rd party app skipped the bad data but it only saves data to the hard drive and won't put it back on the phone.
Anyway, all in an effort to get resume working on the phone when playing long tracks I lost about 3 hours and here is the kicker - resume still does not work.
I suggest to others to also back up to icloud and local so you have 2 different types of backups before wiping your phone to fix this problem.