Thanks for providing the context. That makes it easier to understand your situation. For the record, SQL Server is my expertise, but I am not familiar with Microsoft Azure Backup Server.
This seemed so embarrassing for Microsoft, so I downloaded MABS and attempted to install it on a VM, but my attempt failed already during the check of the SQL Settings, referring my to the DPM logs, which I was not able to find.
Anyway, reading the message more closely, I think I understand what is happening, and it is unlikely that it would have happened to me if I had been able to run the install. To wit, it seems that the way the DPM installs SQL Server, it runs into problems on a better server like yours. Well, 20 cores is not really extreme, so it still is sort of embarrassing.
There seems to be a workaround, though. DPM accepts that you provided an existing instance at installation. And the DPM install media includes the SQL Server setup files, they are in the SQLServer folder where you extracted the MABS files. You need to be careful so that you install SQL Server with the settings that MABS requires. See https://learn.microsoft.com/en-us/azure/backup/backup-azure-microsoft-azure-backup for details. One thing I observed is that MABS seems to require that you have a named instance. Also, you need to install SQL Server Reporting Services separately, but the install file for SSRS is in the SqlServer folder.
If the machine you are installing on is a VM, another workaround could be to reconfigure it to have only 20 cores when you run the installation.