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Time machine has to be linked to an external drive. As far as I know the drive is then dedicated to the Time Machine backup--at least that's the easiest. Since the cost of external storage is negligible these days, it also makes the most sense to do it that way.
Sorry, there was a problem. Please try again later.I'm not sure how you mean that Time Machine won't use all 500 GB. It always does for me. Multiple folders will only confuse Time Machine. I partitioned my backup drive using Disk Utility. One partition is for a clone and another for Time Machine.
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