Symptoms
Assume that you enable Transparent Data Encryption (TDE) for a database in Microsoft SQL Server 2016. You try to backup the database by using the BACKUP DATABASE T-SQL statement that has both COMPRESSION and INIT option specified. In this scenario, you may notice that the existing backup file is overwritten by the new backup file, and the new backup file is not compressed.
Resolution
This issue is fixed in the following cumulative updates for SQL Server:
Cumulative Update 7 for SQL Server 2016 RTM
Cumulative Update 4 for SQL Server 2016 SP1
About cumulative updates for SQL Server:
Each new cumulative update for SQL Server contains all the hotfixes and all the security fixes that were included with the previous cumulative update. Check out the latest cumulative updates for SQL Server:
Latest cumulative update for SQL Server 2016
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
References
Learn about the terminology that Microsoft uses to describe software updates.