SQL Transaction Log Backups - DB Log Settings

We are having an issue with the database log files are truncating after a SQL Transaction log backup via Veeam, but the log file is not shrinking. I was wondering what the best practices are for setting up a database for SQL transaction log backups (IE, the settings under Properties/Options)

Hi friend. Do you mean the size of the log file or how much usage the file has? Because with MSSQL the file size always stays the same or bigger by default and just gets emptied. Did you try view SQL Server transaction log with dbForge tool?