If Azure VM disk is encrypted below are the backup process.
Before you start, do the following:
- Make sure you have one or more Windows or Linux VMs with ADE enabled.
- Review the support matrix for Azure VM backup
- Create a Recovery Services Backup vault if you don't have one.
- If you enable encryption for VMs that are already enabled for backup, you simply need to provide Backup with permissions to access the Key Vault so that backups can continue without disruption. Learn more about assigning these permissions.
Limitations
- You can back up and restore ADE encrypted VMs within the same subscription and region.
- Azure Backup supports VMs encrypted using standalone keys. Any key that's a part of a certificate used to encrypt a VM isn't currently supported.
- You can back up and restore ADE encrypted VMs within the same subscription and region as the Recovery Services Backup vault.
- ADE encrypted VMs can’t be recovered at the file/folder level. You need to recover the entire VM to restore files and folders.
- When restoring a VM, you can't use the replace existing VM option for ADE encrypted VMs. This option is only supported for unencrypted managed disks.
refer- https://learn.microsoft.com/en-us/azure/backup/backup-azure-vms-encryption
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