@Mike Qu Sorry for the confusion!
My question is where is the "snapshot" stored after it is taken and being transferred to the vault?
Answer: Azure backup snapshot is stored locally in the local storage account. More info in this link - https://learn.microsoft.com/en-us/azure/backup/backup-instant-restore-capability#frequently-asked-questions. Also, this picture explains
Is it safe to restart the VM during the transfer process (which can take many hours)? Will restarting the VM interrupt or slow down the transfer?
Answer: Yes its safe and there is absolutely no impact in data transfer speed
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