http://www.veeam.com/vmware-backup/help-center/v6_1/hyperv/index.html?vmware_replica_guest_processing.htm
Please select this one, “Do not truncate logs”.
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Use the Truncation logs section to define the scenario of transaction log handing:
•Select Truncate logs on successful backup only if you want Veeam Backup & Replication to trigger truncation of logs only after the job is finished successfully. In this case, Veeam agent will wait for the replication to complete, and then will trigger truncation of transaction logs. If truncation of transaction logs is not possible for some reason, the logs will remain untouched in the VM guest OS till the next start of the Veeam agent.
•Select Truncate logs immediately if you want Veeam Backup & Replication to trigger truncation of logs in any case, no matter whether the job finishes successfully or fails.
•Select Do not truncate logs if you do not want Veeam Backup & Replication to truncate logs at all. This option is recommended if you are using another tool to perform guest-level replication and this tool maintains consistency of the database state. In such scenario, truncation of logs with Veeam Backup & Replication will break the guest-level replication chain and cause it to fall out of sync.
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When I checked backup list, it’s truncate log like this.
BACKUP LOG xxxDB TO DISK = ‘NUL’
So, physical_device_name is presented as ‘NUL’.
select bs.*
, bf.*
from msdb.dbo.dbo.backupset bs
join msdb.dbo.[backupmediafamily] bf
on bs.media_set_id = bf.media_set_id
where 1=1
and database_name='MyDB' and type='L'
order by backup_start_date desc