When using SCDPM 2016 with an Azure Recovery Services Vault I needed to bypass the web proxy for data transfer from SCDPM to the Azure Recovery Services Vault.  I also needed to bypass the proxy for Azure Site Recovery replication traffic on some Hyper-V hosts.

In the case of SCDPM I used the Configure option under Online Protection in the DPM Administration Console to disable the proxy.

I also checked the CBSettings.xml file for proxy information in the location scratch location, which can be found in the reg key HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows Azure Backup\Config.  As per this KB.

In the case of Azure Site Recovery I ran the Azure Site Recovery Configurator and selected to bypass the proxy server.

In the case of both SCDPM and Azure Site Recovery the replication traffic continued to flow via the web proxy. I removed the DNS suffix used to find the web proxy via WPAD and used the FindProxyForURL toolset to check that WPAD wouldn’t find the proxy.  However, the proxy continued to be used.  In the end I performed the following steps to prevent WPAD from working.

• Remove the DNS suffix used to find WPAD from the network adapter
• Ping WPAD to verify the host cannot be found
• Delete the cached WPAD files from C:\Windows\ServiceProfiles\LocalService\winhttp
• Delete DefaultConnectionSettings and SavedLegacySettings from HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Connections
• Delete the sub key under HKEY_USERS\S-1-5-19\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Wpad
• Restart the WinHTTP Web Proxy Auto-Discovery Service

These are some other useful links: