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By default, Vembu BDR Backup Server application will be having a 4GB threshold point for every repository added to the server. If the backup job reaches this threshold point, the backup jobs automatically jumps to the next storage added to the server. If the second drive (backup storage) is not configured in storage management or if it has less free space, then the backup would fail with the following error "No space left in the storage location".

Since your installation location and storage locations are same (OS drive), you can opt to select a new storage by navigating through "Management > Storage Management" in web console.