[DS1522+] Macbook doesn't see backup dir after update to DSM 7.2

In File Services → Advanced → clicking the Set Time Machine Folders doesn’t show the folder I’ve been using for Time Machine backups.

Has anyone resolved the same issue by any chance? Thanks.

Did you enable Bonjour Time Machine broadcast via SMB in that same screen?

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Yes, I did. And I figured why it didn’t show up in the list of Set Time Machine Folders - it was unmounted (it’s encrypted folder). Now I see it selected in this list, the macbook does see and mounts it as a drive, but when I go to use it in Time Machine - it still can’t backup to it.

I removed it from Time Machine (said is a non-destructive operation in the confirmation dialogue). And now when I try to add it back (it does show up in the list) - it asks for credentials → I enter the credentials of a backup user in synology which has read/write access + SMB application permission.

Result is - every time I enter those credentials → a new copy of the drive mounted shows in the list in Finder (the one showing at Cmd + Shift + C) and Time Machine just keeps asking me for credentials.