I had the same problem. Don't know if this, so maybe my experience will be helpful depending on whether you have other drives hooked up to your Mac. I
I have a 24TB ThunderBay RAID hooked up to my iMac and although there was enough space on my separate Time Machine HD (via USB), it gave me a warning that I needed over 2.5 TB5TB of extra space for a Time Machine backup of 120GB - yeah right! After a lot of cursing and.
After reformatting of the TM-HD, I finally unmounted the ThunderBay RAID, then switchingswitched it off and removingremoved the Thunderbolt connection from the iMac,. Only then did the TM backup to the Time Machine HD immediately wentwork without a hitch. Hope this helps. Maybe
Maybe something in the TM prefs got severely confused by having the RAID hooked up. I find TM on, but for me this solved the whole also very unreliable as it has a tendency to miss out on backing up certain filesproblem. C'est la vie :-)