The preferred method to achieve the requirement of excluding the H: drive on MSSQL server virtual machines is to set up VMDK exclusion for the disk on which the H: resides in the Virtual Machines > Exclusions page for each virtual machine. This method allows you to exclude specific virtual disks from being processed by backup jobs based on their SCSI IDs or disk labels. This can save backup time and storage space by skipping unnecessary data. This method also works reliably regardless of whether the MSSQL servers are built on demand or from virtual machine templates.