The fact: return code "12" means there is something wrong with authentication to remote server.
I ran into this also and seems like this is the most common problem for getting that error:
ERROR: /usr/bin/rsync returned 12 while processing .....
Problem: rsnapshot uses rsync under the hood and can't connect because you probably never actually connected to that remote server.
Solution: You have to connect to that remote server at least once manually through terminal from that machine where rsnapshot is running
with: ssh remote_user@remote_server.domain
so that you confirm the connection and then entry can be made to known_hosts!
After that rsnapshot worked for me.