Note: The backup destination volume that you have selected is on a dynamic disk. If you need to perform a recovery using ...

Note: The backup destination volume that you have selected is on a dynamic
disk. If you need to perform a recovery using this backup, you will have 
limited functionality while performing a bare metal recovery.

Selecting a backup destination volume that is on a basic disk will enable full
functionality for bare metal recoveries. Open Disk Management (diskmgmt.msc) 
to view a list of basic disks.