OK, I get you now. I think.
You are attempting to copy a system drive of all the files with the
exclusion of some specific files and folders, and some specific file types.
The interesting thing is that when I ran it from the command line, I got an
error using the /COPYALL:
ERROR : You do not have the Manage Auditing user right.
***** You need this to copy auditing information (/COPY:U or /COPYALL)
So then I changed the /COPYALL to a /COPY

ATS and got:
ERROR 5 (0x00000005) Copying NTFS Security to Destination Directory
So then I had to amend that to /COPY

AT which worked without incident.
That is from the command line. However when I ran the same thing (with the
/COPYALL from Task Scheduler, using the System account and highest
privileges it copied without incident. Granted I was not attempting anything
as ambitious as you were.
So you may wish to try running it with the system account with the highest
privileges (again) and change the COPYALL to COPY

AT and change the R:1 to
R:5 or something and see if that works.
You could alternately look into the Z, ZB, or B options (if ownership or
auditing or security is important). However, do note that there is more
overhead if you use the backup options I just mentioned.