examining the list of requirements, you notice that it is necessary to have backups encrypted.

The repository type that will be most impacted by using Veeam’s native encryption is dedupe repositories. Dedupe repositories are backup repositories that use deduplication appliances or software to reduce backup size and optimize storage utilization. However, if you use Veeam’s native encryption for backup jobs that target dedupe repositories, you will lose most of the deduplication benefits, as encrypted data blocks cannot be deduplicated effectively. Therefore, it is recommended to use either the encryption feature of the deduplication device or software, or avoid encryption altogether for dedupe repositories.