Installing with time machine backup

Hi guys,
I am having trouble installing Mac OSX from the time machine backup on an external HDD. Installation process goes fine, but then the newly installed MacOS isn't able to find the backups, which are on the same external hard drive where I installed the virtual machines. If I change the Virtual Machine storage back to the computers HDD, then the OS gives me the option to restore the backup it finds on the external HDD. Any ideas how I can have the Virtual Machine be on the external HDD and see the backups from the same HDD?

 

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