Hello,
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Currently, Azure Backup does not support file-level recovery (FLR) from encrypted Azure VM backups — this includes both Azure Disk Encryption (ADE) and customer-managed keys (CMK) scenarios. As a result, when you need to restore a specific file or folder from a backup of an encrypted VM, you’re limited to:
Restoring the entire VM, or
Restoring the entire disk and manually mounting it to another VM for file extraction.
This is understandably time-consuming, especially for minor recoveries.
If FLR is critical for your use case, consider:
- Azure File Share + Azure Backup Use Azure Files for storing data that needs granular restore and enable Azure Backup on the file share. This supports item-level restore and works well alongside VM backups.
- Snapshot + Manual Mount Use Azure Backup’s disk snapshot recovery to mount the disk to another VM and extract the required files manually.
- Third-Party Solutions As you noted, some third-party vendors (e.g., Commvault, Veeam, Rubrik) provide granular restore for encrypted VMs by installing agents or handling encryption keys in their platform.
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