Nothing to worry about, as it's expected behavior of the copy job.
1. The Backup Copy job is continuously looking for new restore points during predefined interval.
2, 3. The backup job has started and locked down restore point for processing.
v.Eremin I thought the Copy every option was erelavent because the Copies are continuously running and the registry key BackupCopyLookFoward is what made the Copy job start Coping the data right after the Backup Job completes because there is new data past the time of the Backup Job start time. Is this all incorrect?
Copy every interval is the time period the job looks for the new restore points to copy and it is always relevant. The registry value you're talking about makes it look forward only and not take into account backups created during the previous copy interval. Setting the interval the way suggested by Vladimir will make the job to start right after the source job starts, wait for the new restore point to appear and start copying it immediately.
Correct. Registry key you've specified makes a backup copy job look only forward for a new restore point to appear. In your case, sync interval started too late, when a backup job had already finished its activity, a backup copy job then waited for several hours and at the very end of interval tried to copy newly created restore point, but didn't end before new interval started. As the result you got "restore point incomplete" error.
Tweaking sync interval starting time should do the trick.