In your case, it seems that the shadow copy storage area is running out of space. You may need to allocate additional space for the shadow copy storage area, or you can try using a different drive with more space as the shadow copy storage area. Keep in mind that the shadow copy storage area needs to be on a locally attached volume, not a network share or external drive.
And When you run a bare metal backup, the backup process typically includes all volumes that are currently mounted and all system state data. This means that all VMs on the Hyper-V host should be included in the backup. If you want to exclude specific VMs, you can deselect them in the backup wizard. However, keep in mind that excluding VMs may not be the best option for...