Selecting latest recovery point will recover each machine to its latest available point in time. Selecting latest application ...

Selecting latest recovery point will recover each machine to its latest available point in time.
Selecting latest application consistent point or latest crash consistent point, will choose the respective multi VM consistent point in time only for the protection groups. In case of multiple protection groups in a recovery plan, each protection group will be failed over to its own latest multi VM app/crash consistent recovery point.