Upgrading SPP

I'm new in managing SPP

We trying to patch the SPP from 7.0.3 to 7.0.4 by following article.

One Identity Safeguard for Privileged Passwords 7.0 LTS - Administration Guide

Summary of the upgrade process.

1. Backup - The backup here, can we perform a snapshot from the VM host or we need to perform the back from the SPP level.

2. Patch the Primary SPP

3. Will the Primary SPP will replicate the patched SPP to its cluster?