I was about to create a new thread for pretty much the same issue but after reading this thread, I have decided to put my issue together here, with a slightly difference.
I have LinkStation Duo LS-WXL running latest firmware 1.71. I have an iMac running MacOS Sierra and, from Mac desktop, I can "map" the network drive using CMD+K and fill in the IP address and name of the shared folder(s). Of course it will ask for username and password but I was able to map the shared drive(s).
However, Time Machine is totally disfunction. The Time Machine setup function from Apple Preference does see the shared folder from the pop-up windows however, it cannot connect to that folder. The Time Machine setup dialog keeps saying that the server (NAS) "...does not exist or is not available at the moment..." I have tried to delete and re-create the Time Machine folder but still no luck.
Not sure if it's because of the MacOS Sierra or because of the outdated firmware of the NAS?
Thank you for all of your helps. Any idea are welcome.
Regards
James