**Replace existing** | You can restore a disk and use it to replace a disk on the existing VM.<br/><br/> The current VM must exist. If it has been deleted, you can't use this option.<br/><br/> Azure Backup takes a snapshot of the existing VM before replacing the disk, and it stores the snapshot in the staging location that you specify. Existing disks connected to the VM are replaced with the selected restore point.<br/><br/> The snapshot is copied to the vault and retained in accordance with the retention policy. <br/><br/> After the replace-disk operation, the original disk is retained in the resource group. You can choose to manually delete the original disks if they aren't needed. <br/><br/>This option is supported for unencrypted managed VMs and for VMs [created from custom images](https://azure.microsoft.com/resources/videos/create-a-custom-virtual-machine-image-in-azure-resource-manager-with-powershell/). It's not supported for unmanaged disks and VMs, classic VMs, and [generalized VMs](/azure/virtual-machines/capture-image-resource).<br/><br/> If the restore point has more or fewer disks than the current VM, the number of disks in the restore point will only reflect the VM configuration.<br><br> This option is also supported for VMs with linked resources, like [user-assigned managed identity](../active-directory/managed-identities-azure-resources/overview.md) and [Azure Key Vault](/azure/key-vault/general/overview).
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