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Database backups have been removed from blacksmith destroy. Sandbox databases are short-lived and effectively never restored, so backing every one up cost more than it returned — minutes added to each teardown, and a sandbox left running in Forge whenever Forge was slow to report a backup as finished.
FORGE_STORAGE_PROVIDER_ID is no longer read. If you still set it, it is simply ignored. If you need a sandbox database to survive its teardown, back it up before running blacksmith destroy or set up a scheduled backup on the server in Forge.