Error running installer: exit code 6200

Recently, we purchased additional license, I was going to add a named instance to backup using RedGate SQL Backup. The current default instance is already using RG SQL Backup.

The error I'm getting on step 2 (Copying and running SQBServerSetup) of adding server component.
Error running installer: exit code 6200
The SQL Backup Agent service failed to connect to the SQL Server instance using the SQL login provided.

I have verified the password and service account for the named instance. If I'm not mistaken, RG SQL Backup is by instance - does that also means if I have RG SQL Backup running on default instance, I cannot have it run on named instance?

Thank you

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