Virtual Appliance Mode for VMs on vVol
To transport data of VMs residing on VVol in the Virtual appliance mode, you must assign the VMware backup proxy role to a VM.
The VMware backup proxy VM must meet the following requirement: for VM restore to a VVol in the Virtual appliance mode, the VMware backup proxy VM must be located on the same VVol datastore as the target VM. If this is not possible, the restore proxy must use a different transport mode.