This means sql server backup and restore not in the same version. SQL Server backup is not backward compatible.
Trying to perform a backup from Windows 2008 R2 SQL Server 2012 and restore it to Windows 2008 R2 Windows 2008. Later, realized the version was not the same. Spun up a new VM with SQL Server 2012 and was able to restore it correctly.
Msg 3241, Level 16, State 13, Line 1
The media family on device 'C:\VCDB\vcdb1\vcdb1.bak' is incorrectly formed. SQL Server cannot process this media family.
Msg 3013, Level 16, State 1, Line 1
RESTORE DATABASE is terminating abnormally.