Add unit tests for config

**Description**
Currently utils lacks proper backup support.

**Proposed solution**
Add configurable backup with sensible defaults.

**Priority**: Low/Medium

Start by locating the utils code and its configuration handling, then identify where backup behavior is currently absent. Define the expected configurable backup options and sensible defaults, and add unit tests that verify those cases and the resulting backup behavior.

Written by the indexing model from the issue text.