I checked with my vendors and we are ok to upgrade to the latest Veeam 9.5 so I am going to do that.
However I was able to accomplish what I needed by not redirecting the writes to a different datastore. When I select Instant VM Recovery and go through the wizzard to restore to a new location, or with different settings, the one option for datastore I must leave "Redirect virtual disk updates" UNCHECKED. If I keep this UNCHEKCED it works no problem. Originally I checked this off and choose a datastore on an older SAN array that we use for lab/testing/play etc... Basically non-prod. The end result was that I restored my VM, gave it a new IP, attached to network, tested my upgrade and documented the process and all went well. I was able to stop the instant recovery process and Veeam tore it down gracefully and I was able to upgrade my production VM with confidence thanks to a test run with this clone. Additionally the Veeam instant restore was faster than just a simple right click > Clone in vSphere.