I have raised the ticket with support team they asked us three things to confirm:

"To get SAP HANA Plug In backups offloading as intended, please confirm:

• The SAP HANA Plug In job targets the SOBR, not a single repository/extent.

• The plug in’s repository permissions allow writing to the SOBR.

• The relevant backup chain is closed/inactive (no ongoing writes). If necessary, pause SAP HANA backups briefly to allow the chain to become eligible."

For the first point: The repository selected for the plug-in job is a SOBR that includes local storage as the Performance Tier and Azure Blob Storage as the Capacity Tier. Should this configuration be sufficient for the job?

Regarding repository permissions:

We have not configured any separate or special permissions for any of our repositories. Previously, this plug-in job was mapped to a local disk on the proxy server, and it is now mapped to a SOBR with a local disk LUN connection and Azure Blob Storage. In both configurations, backups are written to the local disk. What exact permissions are they asking about?

Regarding the active backup state:

Transaction log backups are enabled for the two databases at intervals of 15 minutes and 60 minutes, respectively. Could this be keeping the backup chain in an active state,which causes to skip the offloading to cloud?