Windows Application
Choosing the Host/VM listed and clicking on Edit Guest Processing Settings will bring you to this page. If you are backing up a Windows VM with Microsoft applications such as Exchange, SQL, SharePoint, or AD, under the Windows Application tab, you can see the options to customize the Application-Aware Processing & Log Truncation.
Application-Aware Processing
On selecting Require successful application processing (recommended), the backup will continue only if all the application writers are stable and the application-aware processing is successful.
On selecting Ignore application processing failures, the backup will proceed regardless of whether application-aware is successful or not. This is not recommended, as your backup may not be transaction-consistent.
On selecting Disable application-aware processing, the backup will proceed without ensuring the transaction consistency for the applications inside the VMs.
Log Truncation
On selecting Truncate the transaction logs, the transaction logs of Microsoft Exchange Server & Microsoft SQL Server will be truncated after the successful backups.
On selecting Do not truncate logs, the transaction logs of Microsoft Exchange Server & Microsoft SQL Server will not be truncated.