VMware ESXi vs Windows Server Installer on Cyber Protect

Good day,

I have a server that has Installed ESXi that hosts 3 VMs - which are Windows Server OS machines.

I see on the "add device" 2 options Windows Server  and VMWare ESXi. Also on when I click on VMWare ESXi it has to options one is "Agent for installation in Windows" and the other is "Virtual applicance (OVF).

As I understand the last 2 are used to make a machine as a controller of backup of the Virtual Machines.

My question is what is better?

1. to install inside the Windows Server host the Windows Server Acronis of Cyber Protect

2. Install on a different machine Agent for Installation In Windows

What are the benefits and features?