VM level backup and Plugin for SQL at the same time?

[jackal2001]

We currently run VM backups for hyper-v servers. We have a job running for a SQL server that backs up the entire server which has over a dozen databases on it. That backup job runs nightly and does have guest processing "enable application-aware processing" enabled. The process settings for SQL does have backup logs periodically (backed up logs will be truncated) every 15 minutes. We have full synthetics running once a week and no GFS. There are backup copy jobs going to Veeam Vault as well with different retention and does have GFS.
A new requirement came up where they need to keep a single database on that server retention for 2 years with daily incrementals. (the standard VM backup is only like a month). My research indicated that I would need to use Veeam plug in for SQL as that would be the only way to select a single DB from that server and create new jobs as needed.
My question, is that I don't think I can set up the Veeam plug in for SQL while the VM backup job is running. Won't this cause backup chain corruption if attempting to run both at the same time? VM level backups can remove the backed up logs truncated option, but that would remove it for all the other DBs on that server as well. In the plug in for SQL, I believe there is no option to do log truncation as it is automatically enabled (correct me if I'm wrong on that).
I was running this by AI and they said the only safe solution would be to move that single DB we have the new 2 year requirement for to a new SQL server and only run the Veeam plug in for SQL for that DB. I think then if we wanted to also backup the entire VM at the same time, we would just create a new backup job without using Guest Processing?
Any feedback would be appreciated.