Some terminology clarification: If you are using an image-based backup, then there are no file-level backups performed, as is. The entire image and subsequent incremental backups are encrypted as blocks of data. But you can restore files from image-based backups using the same encryption password used for the image backup.

Clarification questions:
1. Are you using the new backup file format? Or, is this a pre-7.0 image backup plan that you simply continued to use in the 7.0 version?
2. Did you initiate the restore from the Backup Storage tab and then right-clicking the image backup and selecting the "File Level Restore" option? If not, and you used a Restore Plan or browsed Backup Storage using Drive Letters instead of the "Image Based" folder, then you are trying to restore files that were backed up using a File-Backup Plan and would need to specify the encryption password for that plan - which may be different than your image backup plan.

Thanks. I'll wait for your response.

Hi David,
Thanks for your reply. Yes, I right clicked an Image Backup in the Backup Storage tab and selected the "File Level Restore" option. As expected it then asks for the encryption password, accepts it and shows the File Level explorer. I select the file I want restored and the restore job is created. Once I run it, I get the Code 2000 error with an option to enter the correct password. But it doesn't accept it. It's indeed a pre-7.0 image backup that I'm running on v7 (on an Azure cloud). I just installed it today so the existing backups were made with v6.x.

And you are positive you have the correct passkey used for encryption? If so, I will recommend you open a support case using the Tools | Diagnostic toolbar option - do this immediately after trying a restore. Please mention this post in the submission and also make sure to say that I instructed you to open a support case. I will reach out to support from my end.

Well the passkey it needs to show me the contents of the image on a file level is surely the same passkey that it needs to actually do a file level restore, no? I made a video: https://photos.app.goo.gl/MHWkt5vHHsDKGap36

That's correct. They passkey is needed to start the restore.

The Support team is waiting for the ticket. Please open as soon as possible so they can investigate. Thanks.

Done. Case #: 00044604