Will a VM backup of a SQL Server work for restoring the SQL database
I am wondering if a VM backup will restore a SQL database with out integrity issues


Maybe. If you have databases that span local volumes, then your VM backup must be "app consistent" by either using the Windows Volume Shadow Copy Service (VSS), or by ensuring write-ordering across the VM's volumes.

If you're not 100.000% sure of this, you can't rely on VM backups for database recovery.  You can always start with a VM backup and restore your SQL Server backups on it for a more robust recovery solution.