MSP360 uses VSS which is native Windows service. Looks like you refer to the same mechanism

If we are protecting a server using MSP360 using image and file backups, is there a need to modify shadow copies? Or is this managed by MSP360?

This may be a slight pivot, but does using System Protection count as using shadow copies? We want to be able to use System Protection to recover from an installation of bad software, should that be necessary. On Windows 10, when setting up System Protection using System Restore, a message appears saying "Using system protection on a drive that contains system image backups will cause other shadow copies to be deleted faster than normal." Can we and should we be using System Protection in addition to MSP360?

If anyone is able to answer my above questions I would appreciate it.
Thanks!