Time Machine Error, Backup to large - 496 avail and only 79 needs backed up

I have a 1 TB TM with 496.9 GB available (I already have 1 computer backed up on TM)
The second computer I want to back up has 80 GB used of a 500 GB HD.
Time Machine prefs show 496.9 GB available on TM and shows the back up will be 79.1 GB total.
But I get a error each time I try to back up saying " Time Machine Error, This backup is too large for the backup volume. The backup requires 614.1 GB but only 496.9 are available."
Two questions:
How can 496.9 GB be to small for a 79.1 GB backup?
Why does a 79.1 GB backup require 614.1 GB of space?
Thank You
Doug

Here's what Backup Buddy says:
Starting standard backup
Backup destination alias resolved to path: /Volumes/Doug's Time Capsule
Disk image /Volumes/Doug's Time Capsule/Jackie’s_001b63b59975.sparsebundle mounted at: /Volumes/Backup of Jackie’s
Backing up to: /Volumes/Backup of Jackie’s/Backups.backupdb
Event store UUIDs don't match for volume: Backup of Jackie’s
Event store UUIDs don't match for volume: Macintosh HD
Backup content size: 432.7 GB excluded items size: 0 bytes for volume Backup of Jackie’s
Backup content size: 80.2 GB excluded items size: 1007.5 MB for volume Macintosh HD
Starting pre-backup thinning: 614.25 GB requested (including padding), 496.85 GB available
No expired backups exist - deleting oldest backups to make room
Error: backup disk is full - all 0 possible backups were removed, but space is still needed.
Backup Failed: unable to free 614.25 GB needed space
Backup failed with error: Not enough available disk space on the target volume.
Ejected Time Machine disk image.
Ejected Time Machine network volume.

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