Just a quick update. Finally had to contact WD customer support directly. I tried everything I could think of including resetting the NAS, but the USB backup is still disabled. WD could not fix the issue with their level 1 support, and level 2 support is 4 hours ahead of me and available M-F making it difficult to resolve this issue unless I take time off from work. And what is up with the 10 AM start time for Customer Support? I do not even have the option to contact them before going to work, and CS is unavailable after 3 PM my time.
This issue has stopped me dead in my tracks with moving forward with using this NAS. And when I was able to use this feature before it became disabled, about 1 out of every 5 transfer jobs resulted in permission and ownership issues on the NAS which made files and folder deletes impossible. See other post - Unable-to-delete-folders-files-permission-denied
I did not want to spend the money, but I am already starting to look around for the next level up on NAS solutions. Synology comes to mind. Too bad. WD as well as so many other companies are failing to provide quality products/service and are apparently outsourcing their development and customer support at the expense of their reputation and bottom line. But I will commend WD for their involvement with this forum and the helpful contributors who take the time to provide support to users.