I'm getting that too. The backup works fine on the first run once the container is started, then it fails on subsequent runs. However, it will work only once after a container restart. Can you confirm that behavior?
Same result for me. I removed the Appdata folder and the /output folder location and let the Docker container create them. I'm still getting the same error with the newly created and I even tried changing the folder permissions to 777. Last backup failed: [Errno 1] Operation not permitted: '/output'
I'm having the exact same issue. I verified that destination directory has 777 permissions and also verified in the Docker socket container logs that it is receiving calls from the Unraid Config Guardian Webui.