Hello @Faye Marie Brucal - Welcome to Microsoft Q&A community forum!
As per screenshot, you are using Azure backup agent and there is one server protected (meaning, being backed up to Azure). If you are planning to remove/delete the protected server, the backup data associated to that server will also be deleted from recovery services vault (RSV). Once this delete operation is performed, there will be no data in the cloud for that particular server. Here is the guide you can refer to - https://learn.microsoft.com/en-us/azure/backup/backup-azure-delete-vault?tabs=portal#delete-protected-items-in-the-cloud
Recommendations: For production servers protected with Azure backup, it is not recommended to delete server unless you have a backup plan in place.
If this is a test server and you want to delete it after testing Azure backup, you can go ahead and complete the deletion task.
Hope this clarifies. Feel free to reply if need further assistance in this matter.
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