This policy setting allows you to manage whether backups of a machine can run to a network share or not. If you enable this policy setting machine administrator/backup operator cannot use Windows Server Backup to run backups to a network share. If you disable or do not configure this policy setting there is no restriction on network share being backup target.
Disallow network as backup target
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HKEY_LOCAL_MACHINE -> Software -> Policies -> Microsoft -> Windows -> Backup -> Server # NoBackupToNetwork
Windows Components -> Backup -> Server