I came across very strange issue where when I configure a Backup Job to backup SharePoint site, I have noticed whenever the job starts, no contents can be found/restored/backed up. I logged a case with Veeam@Support [03330797] and I'm surprise to hear that, the SharePoint backup works in conduction with the Retention Period sets on Veeam O365 Repository...!!!
That’s strange for such a backup process. Now the retention period should be applied on the backed up data files and not on the actual files which needs to be backed up...

Within Veeam O365 Repository Configuration its clearly specified "Retention Policy For Backed up Data".. and not for a data that needs to be backed up. Nor its ideal to set the retention period ForEever just because Sharepoint cannot be back up the entire contents…
Hey @Veeam, am I understanding correctly or something wrong..?
Regards,