The Help file indicates this option is only available for Tape media and
tape drives that support compression.
a.. Selecting If possible, compress the backup data to save space compresses
the data you are backing up so you can save more data on a tape. If this
option is disabled, you do not have a tape drive on your computer or your
tape drive cannot handle compressed data.
You need to have the disk formatted in NTFS for its compression to be
available
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