Actual Solution for System Restore Error Code 0x81000203 – Windows Forums

Volume Shadow Copy and the service Microsoft Software Shadow Copy Provider must also be started and set to automatic.

With both of these services active, the System Protection tab will work. Then select the drive, click the Configuration button, and set the Maximum Disk Space usage to something more than zero (depending on how many generations of restore points you want, this should be at least a few GB and could benefit from substantially more).

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