Everything I've looked online seems to suggest this is a software issue.
I finally managed on Monday morning to get to SAFE MODE screen and was able to boot the system normally, but only after removing one of the SATA drives.
The only different before removing the drive the message was:
"Virtual drives disk is degraded and failed" and could never get to safe-mode screen.
And after removing the drive the message reads:
"virtual disk is degraded"
And i booted into windows, no errors and all data is intact, nothing was missing.
I checked OPENMANAGE and it shows the 2 remaining SATA drives and they are all in GREEN STATUS with non-critical note reading "drivers out of date".
Although no data is missing or corrupted, things do appear to be a bit slow-loading in term of browsing files and accessing them. Yet all scheduled backups ran as normal, same time no delays.
I'm not an IT guy, but have my doubt that this is a hardware problem, more like software related. Especially that this IT company I contacted wants $1200 to just rebuild array and want to charge $300 to update the firmware / driver which they said was not that big of a deal, but insist a 2nd failure will wipe all data.
I'm not sure, but I get the impression I'm being sold fear.