Casey, thanks for the reply but it really didn't answer anything I don't think...
I ALREADY have the Host machine licensed with granular restore AND with they SQL continuous. So that is covered.
From the link you provided:
Hyper-V Environments
BackupAssist with the SQL Continuous Add-on can be used to backup SQL Servers that are running on guests (VMs) in Hyper-V environments.
Backing up SQL from the guest
BackupAssist and the SQL Continuous Add-on should be installed on the guest VM that is running the SQL Server.
Backing up SQL from the host
It is best practice to not run applications on the Hyper-V host because any problems or performance overheads could affect all of the guests, and software updates could require a server reboot, causing an outage for all of your guests and the services they provide.
If your Hyper-V Server is running multiple SQL servers on separate guests (VMs) it is possible to install BackupAssist and the SQL Continuous Add-on on the Hyper-V host and back up each guest, but this is not recommended.
So... Do I need to buy another BackupAssist license for the SQL Guest machine? The way I read it is "Yes". But I want to verify before spending that money. So OK the guest is in charge of continuous SQL backups, does that need to stop while the host backup process runs? Or is the guest aware enough to pause the continuous SQL backup while the host process finishes?