If your target is a SR (and NOT a BR), then what you do is not called "Backup" in XO, but Replication (full or incremental).
Target -> Backup mode:
SR -> Replication (you can use it with retention to have a kind of backup too)
BR (Backup Repository or "remote") -> Backup
Both can be full or incremental.
Note: you CAN'T and shouldn't use a host as a BR. A BR must be any NFS/SMB/S3 capable operating system, as long it's not XCP-ng.