On data backup attempt with TWRP, error "Failed to mount '/data'"

This is the version which is bundled with your version of Fairphone Open OS.
Fairphone’s own TWRP versions bundled with Fairphone’s OSes don’t support encryption up until now (even the TWRP 3.1.1-0 bundled with Android 7 currently doesn’t).

Community TWRP on the Fairphone 2 supports encryption since version 3.0.3-1.

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