Which backup schedule to choose? Not sure what your retention period is, and whether you have a requirement for using GFS.
But assuming you don’t need GFS, if you want to keep say 90 days of backups, you would need to start backing up using legacy format going forward and keep the existing new format .bak files for 90 days until you can safely delete them from cloud storage. I use Cloudberry Explorer to delete the files that are no longer needed.
I assume that you are not using the MSP360 SQL backup, so it is a little trickier to keep only 90 days of .bak files since as you stated, they are all unique files and would never get purged. There is a way to do it and I would be happy to explain how to set it up if you want.
Just to clarify, you can’t change exisiting backups from one format to another.
If you still have the .bak files from the past x days on primary storage, you could back them up again using legacy format and then you could delete the NBF .bak files right away.