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I do regular snapshots of my containers live and sometimes restore them, no issues there. De-duplication and incremental features are (mostly) provided by the storage backend, if you use BTRFS or ZFS for your storage pool every container will be a volume that you can snapshot, rollback, export at any time. LXD also provides tools to make those operations: https://documentation.ubuntu.com/lxd/en/latest/howto/instances_backup/
That makes sense, but no remote backups over the network? Local snapshots I don't really count as backups.