LiteSpeed Restore Wizard Select Source window does not allow you to browse to a non-local folder. The UNC path may be entered manually, including the file name and the file is restored normally. All permissions to folder and file are correct. The folder is located within the same domain as the backup server. Files backup to this location correctly.
It's a Windows Call function that returns either the local drives or the entire domain (determined by a registry entry).
Add a new backup directory in Enterprise Console to a domain drive (not a local drive).
The LastBackupFileDir in HKEY_CURRENT_USER\Software\Microsoft\Microsoft SQLServer\instance_name is populated, when browsing from the Select Source File window, during the restore process, the servers and instances from the domain appear, not just the local drives.