Answer: As mentioned below, the app can only run when there is an unecrypted backup stored in the MobileSync directory. There is a simple fix:
/1/ Fire up iTunes
/2/ Select your iPhone from the source list
/3/ Under the info tab, check the "encrypted backup" option (we will create an encrypted backup first)
/4/ When the encrypted backup is complete, unplug your iPhone
/5/ Plug in the iphone again, let it sync, and then check off the encrypted backup button under the info tab
/6/ An unencrypted backup will be created
/7/ File up iPhoneTracker and enjoy