File Server as a VM GRT recovery

I do have the license for the Hyper-V hypervisor. One of the VMs will be a file server. I saw a document stating Granular Recovery Technology. It details " Recover entire virtual machines, on extract individual files and folders."

I wanted to clarify the statement as it seemed to have created a confusion, do I need to recover an entire VM and extract Individual files and folders?

All I wanted to verify is, using agentless backup on the VM, if I want to restore individual files, is it possible without recovering VM, just a single file?