Resolution:
as-admin command syntax:
recover space '<space>' keep_files true recovery_policy 'policy'

A backup of the persistence files will not be taken when fast load is selected for the recovery policy. Here the persistence file(s) will be reused and upon recovery, it will not read from old file and write to a new file.

Below are the list of all recovery_policy settings and the behavior setting keep_files true.

'robust_load_only'
   keep_files=true after recovery old persistence file will not be deleted (AS works with the persistence with the newest timestamp).

'without_data'
   keep_files=true no recovery, but old persistence file will be saved.

'no_data_loss'(default)
   keep_files=true not relevant (AS will reuse existing persistence file on recovery, faster).

'data_loss'
   keep_files=true not relevant (AS will reuse existing persistence file on recovery, faster).

'fast_load_only'
   keep_files=true not relevant (AS will reuse existing persistence file on recovery, faster).

Recovery command "recover space parameter 'keep_files true'" will not create a backup file for all recovery options.