So after some digging and applying this solution in real world situation I can share with you that this is possible to migrate your SQL Server (system DBs, users ones or even the installation files) using stock Windows Server tools.
All you have to do is:
introduce the new storage to your OS
open disk manager (diskmgmt.msc) and convert your disks (to ...
The .\ is not interpreted in the Query parameter as 'current directory' and so SQL looks for the file in its default backup location. You have a couple of options
Change the Query value and specify the full path to the file
Pass a variable into the Query string (see below)
Option 1 is the simplest, but you may have need of using variables elsewhere, so ...