Just recently fixed this problem that a few of you are getting, including myself.

In the "Read Me" it asks you to remove the local backup encryption and also prompts you before jailbreak. If you do see a message concerning this, follow my instructions to fix:


On your iDevice, go into settings, click on the general tab. Once you have, scroll near the bottom to find "Profile". Click on that and remove every profile on there.

Once this is done, you can then untick the "Encrypt Local Backup" box in the menu and you can continue to jailbreak.