"Specified backup files are not found" when running an AUTOMATED RESTORE.

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The same error for local backups when source and destination instances are located on different machines.
In the "Specify Backup Source" page in the AUTOMATED RESTORE" wizard, type in the SQL Server name source. Then click on the ellipsis to select the databases to be restored.

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Restore is performed from the local destination. The solution how to perform it between 2 servers is to create a shared location where backups are stored and both servers have access to this location.