Limitations of VMware application backups
Databases are cataloged and protected only if they exist in a configuration that is supported for VMware backups. Make sure to store databases and transaction logs on supported storage.
VMware application backups do not support the following policy options and configurations:
Incremental backups. Instead, you can create an MS-SQL-Server policy for SQL Server incremental backups
SQL Server clusters or SQL Server availability groups.
SQL Server databases are not cataloged and backed up if they exist on the following:
Virtual machines that use raw device mapping (RDM).
Virtual Machine Disk (vmdk) volumes that are marked as independent.
Virtual hard disks (VHDs).
RAID volumes.
ReFS file systems.
An excluded Windows boot disk.