ERASEFILES_REMOTE specifies the retention interval for files located on remote shares, be it in the primary backup folder, COPYTO folder and MOVETO folder. If your backup does not use any remote shares in any of the above 3 parameters, it has no effect.
As you are leaving out the COPYTO option to copy your backup files to the remote share as they take too long, the ERASEFILES_REMOTE option would not be of any help to you.
As for the patches, I would suggest contacting Red Gate support indicating the issue you are facing, and they would then be able to determine if the latest patch version addresses your issue.
SQL Backup Consultant Developer
Associate, Yohz SoftwareBeyond compression
- SQL Backup goodies under the hood, updated for version 8