You have a Recovery Services vault named RSV1.

https://learn.microsoft.com/en-us/azure/backup/backup-azure-arm-restore-vms#restore-options

To recover VM1 to a point eight days ago, you need to use the Azure Backup service to restore the VM from a recovery point. A recovery point is a snapshot of the VM data at a specific point in time. Azure Backup creates recovery points according to the backup policy that you configure for the Recovery Services vault1.

In this case, the Recovery Services vault named RSV1 has a backup policy that retains instant snapshots for five days and daily backup for 14 days. This means that you can restore the VM from any point in the last 14 days, as long as there is a recovery point available. Since you need to recover VM1 to a point eight days ago, you can use the daily backup recovery point that was created on that day2.

To restore the VM from a recovery point, you have two options: Replace existing or Create new. The Replace existing option overwrites the existing VM with the restored data, while the Create new option creates a new VM with the restored data. The Replace existing option requires you to deallocate or delete the existing VM before restoring it, which can cause downtime and data loss. The Create new option allows you to restore the VM without affecting the existing VM, which minimizes downtime and data loss3.

Therefore, the best option is to restore VM1 by using the Create new restore configuration option. This will create a new VM with the same name as VM1 and append a suffix to it, such as -Restored. You can then verify that the new VM has the correct data and configuration, and switch over to it when you are ready. You can also delete the original VM if you don’t need it anymore3.