I do have Application Aware Image Processing enabled. I haven't tried Instant VM recovery but it there much difference in restore process from a surebackup boot and instant VM recovery (other than vmotion to production datastore?) I did see that the sysvol and netlogon shares are not present. A previous post on a similar matter suggested the following:
Command line: net stop ntfrs
Regedit: hklm\SYSTEM\CurrentControlSet\Services\NtFrs\Parameters\Backup/Restore\Process at Startup - Set the burflags to d4
Command line: net start ntfrs
I performed this and the shares were restored and I was able to bring up ADUC. But this isn't normal operation and I haven't tested further to see if it had larger impact. As this used to work properly I am wondering if a group policy or other change that may have been pushed down may be causing this. However, I'm not aware of what change could/would impact Veeam DC restore process.