The example given makes me uneasy. Maybe needlessly, but my read on the Win cmd.exe window (using [] to enclose related bits :^) is:
[command] [d:\location\folder] [DESTINATION DRIVE:LOCATION:FOLDER] [/E]
Maybe lower-case /e, works as well, maybe in implied destination to present location works. When I type "help xcopy" is lists the command name, the source, and the destination and the /Upper Case Switches. Yes, destination is optional. But when results don't match your expectation, dropping back to the canonical form, with every jot and tittle in place, seems like a stronger start. One can focus on the thing that's not working.
The help example doesn't use it, but I also feel a bit safer if its clear that the literal path given is the stem and explicitly put in a wildcard:
C:>xcopy /E C:\Backup* C:\ToyVmBackup
C:\Backup\Backup_VM1_2015-08-27T221110.vbk
C:\Backup\Backup_VM2_2015-08-31T221227.vbk
C:\Backup\VeeamConfigBackup\SVC-L7-WABBOTT\SVC-L7-WABBOTT_2015-08-24_10-00-15.bco
3 File(s) copied
Ok, I prefixed the /E and got away with it. Its ambiguity I'm trying to control, as long as /E starts with a '/' it won't be taken for a path...