Well, after excluding my ~/Library/Metadata directory from Timecapsule backups, everything worked fine for a couple of days, up through yesterday actually. Today its failing again on the Metadata directory, so apparently removing it and having Monterey recreate it is not any kind of permanent fix. The log showed:
error 17:07:44.499695-0500 backupd Failed to proactively acquire device lock assertion on lock state change (0). error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
error 17:07:44.538435-0500 backupd [ERROR] Couldn't get account descriptors from daemon - Error Domain=NSCocoaErrorDomain Code=4099 UserInfo={NSDebugDescription=<private>}
error 17:07:57.909384-0500 backupd Failed to acquire device lock assertion for /Volumes/com.apple.TimeMachine.localsnapshots/Backups.backupdb/Curtis’s M1 iMac/2022-01-17-170736/Data/Users/crubel/Library/Metadata error: Error Domain=NSPOSIXErrorDomain Code=1 "Operation not permitted"
error 17:07:58.808415-0500 backupd Failed postflight for destination <APFSDestination /Volumes/SuperDuperDisk TimeMachineBackups>
error 17:07:58.963882-0500 APFSUserAgent Cannot remove volume for disk=0x140105cd0 desc=0x140009390 bsd_name=(null) vctx=0x0
I excluded that same Metadata dir from Timecapsule Options again and the backups completed OK. So at least in my case there is a definite issue with the Metadata directory like it was in use or some sort of security permissions or something else new for Monterey I am not aware of yet. Either way this is an Apple issue and they will need to fix it or remove Timecapsule from the operating system apps since it is definitely not reliable to use it and your backup app needs to be extremely reliable...