The Hide previous versions of files on backup location machine setting should be configured correctly. This setting lets you hide entries in the list of previous versions of a file in which the previous version is located on backup media. Previous versions can come from the on-disk restore points or the backup media. If this setting is enabled, users will not see any previous versions corresponding to backup copies, and will only see previous versions corresponding to on-disk restore points. If this setting is disabled, users will be able to see previous versions corresponding to backup copies as well as previous versions corresponding to on-disk restore points. If this setting is not configured, it will default to disabled. Fix: (1) GPO: Computer Configuration\Administrative Templates\Windows Components\Windows Explorer\Previous Versions\Hide previous versions of files on backup location (2) KEY: HKLM\Software\Policies\Microsoft\PreviousVersions\HideBackupEntries