After much deliberation,  the problem has been resolved. 
 It turned out to be a permissions issue on the Cold bucket storage. 
 The splunkd service on windows was running as local system.  The Server$ computer account had read write access to the Cold bucket  folders, and copying/moving/creating folders worked as expected when running as local system.  For some reason this didn't work for splunk. 
 To resolve this, a domain service account was created and the permissions re-applied for this account.  After changing the user splunkd ran as, the cold buckets started moving. 
						
					
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