A production AHV VM stores regulated customer records. The security standard requires data-at-rest encryption and the ability to restore the VM to any daily recovery point for the last seven days. Which configuration satisfies both requirements?

Prism Central separates these responsibilities into two policy types, both usually associated with VMs through categories. A storage policy defines how data is stored: encryption, compression, QoS throttling and replication factor. A protection policy defines recovery points: how often they are taken, how many are kept locally and remotely, and where they are replicated. Data-at-rest encryption therefore comes from an encryption-enabled storage policy (or cluster-level encryption), while seven days of daily restore points come from a protection policy with a 24-hour schedule and seven retained recovery points. Associating the VM with both satisfies the security standard and the restore requirement. Erasure coding and RF2 copies improve capacity efficiency and node-failure tolerance, but replicas are not recovery points: a deletion or corruption is replicated immediately. A compression and RF3 policy provides neither encryption nor restore points. A protection policy without encryption meets the recovery requirement but leaves data unencrypted at rest. Exam caveat: storage policies do not contain snapshot schedules or retention; that is always the job of a protection policy or, in Prism Element, a protection domain. Operational check: verify the VM's category maps to both policies in Prism Central, confirm encryption status, and check that seven daily recovery points exist after a week.