Veeam Backup & Replication copies VM data from the source backup repository and saves them to the full backup file on the target backup repository. The created full backup file is marked as a weekly backup.
Veeam Backup & Replication repeats the weekly backup cycle until the number of weekly backups allowed by the retention policy is exceeded. After that, Veeam Backup & Replication removes the earliest active weekly full backup from the target backup repository to make room for the most recent active weekly full backup.
Veeam Backup & Replication treats active weekly full backups as regular full backups, and applies regular retention policy rules to maintain the necessary number of restore points in the backup chain. For more information, see Retention Policy for Active Full Archive Backups.