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VM Palmdale shows full backups are being created by Windows NT Authority, this is concerning because we already have ASR backups running through azure, please advise why SQL would allow additional backups
SQL Server never denies anyone who has the permission to run a Backup. The user running the backup is assuming to what he/she/it is doing. If you don't want these extra backups to happen, you need to find out what is taking them and stop that job.
You can also look at ERRORLOG file to see what kind of backups they are. May be something is scheduled to run at regular internal within the server.