Assuming steps 1 and 2 got a matched job database and destination files, Duplicati should restore OK.
I’m not clear on the words of step 3. If you mean you put back the new database and destination, ditto, however your accident apparently deleted all but latest version, so how did you know backup’s history?
Actually the database has clues, but it’s good to know that you have only a two month gap in restoring. Maintaining continuity with old could in theory mean restoring the latest version of source files, go back with the two month old database and destination, do another backup to bring it up to date after the gap.
This is all in theory and I’m not totally clear on what you did, so if you test, try not to make things worse.
Safer would be to save VSS recovered files as history. When source looks as desired, run fresh backup. Unfortunately, drive might not have enough room for both the old and new destination files. Your choice, however as long as you have that VSS safety net, you can probably revert if problems with plan appear.
Test your restore, and if there have ever been other signs that Duplicati has trouble, that’s an alarm too.
Good practices for well-maintained backups has more, but care taken depends on value of that backup.
If you mean the GUI server database Duplicati-server.sqlite, that’s where the options for the backup are.