Windows Backup taking waaaaay to long

While I'm not a heavy user of these MS forums I have had to resort to them from time to time over the last 15-20 years. Yet I still can't figure out the organizational structure and it seems I can never find the right forum for my query. Almost every time my post gets moved to the correct forum or message board, or someone gives me a link directly to it. I expect it to be no different this time, and I'm perfectly fine with that. So here we go.

I have Windows Server 2025 installed as a VM using MS's built-in Hyper-V on a Server 2025 computer. the VM is set up as a DC and all that stuff functions exactly as it should. However, doing the backup has suddenly gone from taking anywhere from 2 hours to a max that comes close to but has never exceeded four hours. Obviously, it depends on how much there is to actually back up. I've already gone through the troubleshooting tips to do things like checking the VSS settings and a bit of other stuff I can't exactly recall at the moment. 

I have an external physical 1TB usb hard drive attached to the physical computer and then it's attached as a drive to the Server 2025 VM and shows up in computer management/disk manager ad Disk 1, as it should. I have the VM set up to use this Disk 1 as the backup disk with the Windows Server Backup program. Some things I note and add here in case it matters.
- The size of the VM disk for this Server 2025 VM is 500GB and the partition size of Drive C shows as 498.91GB with the remaining shown as 100MB for the EFI system partion and 1001MB for the recovery partition. 

 - When backup starts, a new disk labeled Disk 2 appears in the disk management window on the VM and I note it's the same size as Drive C on the VM at 498.91GB.

I'm wondering if this has anything to do with why my backups suddenly went from taking a max of 4 hours to as long as 20 hours to complete. Where is this virtual disk created? I looked on the VM host machine in the C:\programdata\microsoft\windows\Virtual Hard Disks directory, and it's not there. It's not on the VM machine because the virtual hard disk directory doesn't exist in that same location on the VM. THe host machine itself has a 2TB hard drive in it with 993GB of free space. 
Any advice or suggestions here? I have no idea why backups went from 2-4 hours to taking 20 hours or more to complete. 
Thanks for any help, advice or suggestions anyone can offer here.

-Carl