We use VEB on our live SQL servers, VBR on our test SQL servers - that are restores of our VEB covered servers. Apparently since the restore of course has the original's IP address, regardless of being on an isolated, disconnected network, VBR gets confused and backs up the logs on our live servers. I would call that a bug but not sure if that's by design.
Changed the IP of the test server and the problem went away. Odd, since it's on an isolated/disconnected vSwitch.