In this scenario, where you need to recover VM1 to a point eight days ago while minimizing downtime, the appropriate action would be to choose the "Replace existing" option.
Here's why:
Recovery Point: The requirement is to recover VM1 to a point eight days ago. Since the daily backups retain data for 14 days, there should be a backup available from around eight days ago.
Minimize Downtime: Choosing the "Replace existing" option ensures that the restored VM1 will replace the current VM1 instance, minimizing downtime. This option replaces the entire VM with the backup version, including its disks, configuration, and data. It's typically faster than creating a new VM and copying data back.
Therefore, the first step would be to initiate the restore operation and choose the "Replace existing" option to restore VM1 to the desired point in time while minimizing downtime.