VHD is a simpler format to recover files from but less tools/ready information to do so. I've generally favoured zip/rar for bulk saving lots of smaller files I don't need regular access to to avoid wasting space due to allocation/cluster concerns - the built in tools (in the various zip programs, etc.) for recovery generally work OK - I've rarely encountered a problem with corruption but I tend to keep offline backups as well just in case.
I tend to just use zip not entirely thought out why - amongst other factors Windows has built in support for unpacking it even if you don't have access to other tools.
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