Filestream Creation Unable to Open Physical File Operating System Error 259

Hey Everybody,
I have run out of options supporting a customer that is having an error when creating a database with a file stream.  The error displayed is unable to open physical file operating system error 259 (No more data is available).  We're using a pretty
standard creation SQL script that we aren't having issues with other customers:
-- We are going to create our data paths for the filestreams.  
DECLARE @data_path nvarchar(256);
SET @data_path = (SELECT SUBSTRING(physical_name, 1, CHARINDEX(N'master.mdf', LOWER(physical_name)) - 1)
                  FROM master.sys.master_files
                  WHERE database_id = 1 AND file_id = 1);
-- At this point, we should be able to create our database.  
EXECUTE ('CREATE DATABASE AllTables
ON PRIMARY
    NAME = AllTables_data
    ,FILENAME = ''' + @data_path + 'AllTables_data.mdf''
    ,SIZE = 10MB
    ,FILEGROWTH = 15%
FILEGROUP FileStreamAll CONTAINS FILESTREAM DEFAULT
    NAME = FSAllTables
    ,FILENAME = ''' + @data_path + 'AllTablesFS''
LOG ON
    NAME = AllTables_log
    ,FILENAME = ''' + @data_path + 'AllTables_log.ldf''
    ,SIZE = 5MB
    ,FILEGROWTH = 5MB
GO
We are using SQL Server 2014 Express.  File streams were enabled on the installation SQL Server.  The instance was created successfully and we are able to connect to the database through SSMS. The user is using an encrypted Sophos. 
We have tried the following:
1. Increasing the permissions of the SQL Server server to have full access to the folders.
2. Attempted a restore of a blank database and it failed.
There doesn't seem to be any knowledge base articles on this particular error and I am not sure what else I can do to resolve this.  Thanks in advance for any help!

Hi Ryan,
1)SQL Server(any version) can't be installed on encrypted drives. Please see a similar scenario in the following link
https://ask.sqlservercentral.com/questions/115761/filestream-and-encrypted-drives.html
2)I don't think there is any problem with permissions on the folder, if the user can create a database in the same folder. Am not too sure. Also see the article by
Jacob on configuring the FILESTREAM for SQL Server that describes how to configure FILESTREAM access level & creating a FILESTREAM enabled database
Hope this helps,
Thanks
Bhanu 

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