Hi @Mike T ,
Thanks for reaching out to us!
Currently, we do not support restoring of Azure VM backup as VM in on-premise environment. You can refer to the restore options available with Azure VM backup here - https://learn.microsoft.com/en-us/azure/backup/backup-azure-arm-restore-vms#restore-options
Also, backup of on-premise VM to Azure is supported but restoring the VM in Azure is not a supported scenario. Feedback reference: https://feedback.azure.com/forums/258995-azure-backup/suggestions/6197211-backup-on-premises-vm-to-azure-and-restore-the-vm
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