Redundancy is key.
No reason back up any OS or complete drive. If I have to replace hardware I always go back with
fresh installs. Crazy to use a failed copy.
Arq for encryption. I have the keys! Encrypted before it leaves me.
Local - but on the table to go.
Offsite:
AWS S3
Google Nearline
Neither has a delayed restore. Fast too. At multiple different geo locations, west, central and east. Redundancy!
If a loss/failure of most or all offsite locations, I have more to worry about than backups!
It's not a failed drive it's a new drive clone which you can still access as a drive. Lots of reasons for full data back up.