So I have an image backup of the entire Data partition on the server, and then an additional F&F backup of the file share folder that uses custom NTFS permissions in various places.

So in my own case, I'm supporting a client with a file server that has custom NTFS permissions, but I wanted to make sure that if there were ever a disaster scenario and they didn't have access to professional IT, they would still be able to restore their data in a way that maintained the correct security. By comparison, the File & Folder restore wizard has a simple checkbox that allows you to specify that you want to restore any custom NTFS permissions, and it's enabled by default, which makes this process easy. There are command-line tools that allow you to copy content in a way that DOES carry custom NTFS permissions over, but not everyone knows about those tools or is comfortable using a command-line environment. The problem there is that if you just mount the image backup as a virtual disk and copy/paste the content back to the original source, those custom permissions will not carry over in that copy operation, because of how Windows Explorer handles NTFS permissions in that scenario. The reason that can be a challenge for image backups is that although all of that would be restored if you restored the entire image backup, sometimes of course you just want to extract individual files and folders. That case is on a file server where you've set up a lot of custom NTFS permissions. There's only case I can think of (and that I personally use) where it can make sense to back up the same data via both image and File & Folder backup.

Backup vs file history