You have an on-premises server named Server 1 that runs Windows Server.

Azure VM backup is delivered to a virtual machine through a backup extension that the Azure Backup service pushes down to the VM when a backup job runs, and that extension itself depends on the Windows Azure VM Agent already being installed and running on the guest operating system in order to be deployed and to communicate with the platform, so installing the Windows Azure VM Agent on VM1 is the necessary prerequisite step that enables Azure Backup to function on that machine at all. Recovery points for a full Azure infrastructure-as-a-service virtual machine, whether application-consistent or crash-consistent snapshots, are stored specifically in a Recovery Services vault, which remains the vault type used for whole-VM backup and restore scenarios in Azure Backup, as distinct from the newer Backup vault resource type that is used for other, more granular workloads such as Azure Disk backup or blob-level operational backup rather than for full VM recovery points. Installing Windows Server Backup or the Azure Connected Machine agent on VM1 would not enable Azure ' s native VM backup capability at all, since Windows Server Backup is a separate, unrelated in-guest backup tool and the Azure Connected Machine agent is used for onboarding non-Azure servers to Azure Arc rather than for enabling backup on an already-Azure VM, and neither Azure Key Vault nor a Backup vault provides the VM-level recovery point functionality that this scenario specifically calls for.