When you run System Center Data Protection Manager on Windows Server 2016, you will face the following error when you try to create a protection group, if you are preparing storage the legacy way.
And it’s OK, because System Center 2016 Data Protection Manager running on Windows Server 2016, only supports the new DPM Modern Storage feature which uses ReFs formatted volumes instead of disks. The volume(s) must not reside on a Windows Dynamic Disks, just a basic disk which should be GPT if the disk is 2TB or larger. Add the volume(s) to the DPM storage pool, then protection can succeed.
For more info about adding storage to DPM 2016, click here.