This policy setting lets you hide entries in the list of previous versions of a file in which the previous version is located on backup media. Previous versions can come from the on-disk restore points or the backup media. If you enable this policy setting users cannot see any previous versions corresponding to backup copies and can see only previous versions corresponding to on-disk restore points. If you disable this policy setting users can see previous versions corresponding to backup copies as well as previous versions corresponding to on-disk restore points. If you do not configure this policy setting it is disabled by default.
Hide previous versions of files on backup location
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HKEY_CURRENT_USER -> Software -> Policies -> Microsoft -> PreviousVersions # HideBackupEntries
Windows Components -> File Explorer -> Previous Versions