You should configure a SQL Server in Azure VM backup policy from the Recovery Services Azure portal blade.
The Azure Recovery Services vault has three default policy templates:
Azure Virtual Machine
Azure File Share
SQL Server in Azure VM
Because you need to back up both the SQL Server databases as well as transaction logs, you should create a SQL Server in Azure VM backup policy. These policies also enable you to specify backup retention durations at the daily, weekly, monthly, and yearly scopes.
You should not configure point-in-time and long-term retention policies from the SQL Servers Azure portal blade. These backup and retention policies are available for the Azure SQL Database platform-as-a-service (PaaS) offering, and not for Azure virtual machines hosting SQL Server databases.
You should not configure a continuous delivery deployment group from the Virtual Machine Azure portal blade. This feature is unrelated to VM backup and recovery, and allows you to integrate a VM in a Visual Studio Team Services (VSTS) continuous integration/continuous deployment (Cl/CD) workflow.
You should not configure a point-in-time snapshot from the Disks Azure portal blade. The snapshot functionality in Azure does not have formal policy associated with it, nor does it back up VM configuration.