Workarounds for Windows File History to use internal drive

Currently, Windows 10's File History refuses to use an internal drive as the backup drive for whatever reason Microsoft may have. It can only use an external hard disk or a network drive for backup.

I like File History as it can backup multiple versions of files which protects me from accidental deletions and overwriting of files. For that reason, I don't want to always carry my external backup hard disk with me just in case I need to restore some files. If the backup is already in my internal hard disk, I could always restore my backup versions easily.

However, backing up into an internal drive does not protect against computer failure, damage, loss, theft or ransomware attack. You will still need a separate backup solution for that.

If you have a network attached storage (NAS) that is always available to you wherever you go, then setting the File History to the NAS can protect you from accidental deletion, computer failure, damage, loss, theft or ransomware attack.

As I don't have an always available NAS (I have a NAS but it is not always online and not always with me at work), backing up into my internal hard drive makes sense for me.

There are two workarounds for this.

A shared folder as a network drive

The first workaround is; you can create a folder in that drive and make it a network shared folder. Set the File History to use that network shared folder as the backup drive.

You can refer to this blog post for the how to:
Ask Paul: Configure File History to Use a Single Drive

Virtual hard disk as the backup drive

The second workaround is; you can create a virtual hard disk (VHD) and set the File History to use that drive as the backup drive. The good thing about using VHD is that you can backup the VHD file to an external location. Be it an external hard disk or a network attached storage. This will protect you from computer failure, damage, loss, theft or ransomware attack.

You can refer to this blog post for the how to:
Windows 8 - enabling file history on a single internal drive...