All "new" macOS require APFS and although Mac OS Extended (Journaled) will still work on a HDD for TM it is not the recommended format.
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APFS (Apple File System) is the preferred format for Time Machine backups, especially on macOS 10.13 or later. It offers several advantages such as full-disk encryption, the ability to create point-in-time snapshots, and cloning of files. However, APFS does not support compression, Fusion drives, and encrypted volumes are not easily accessible.
HFS+ (Hierarchical File System Plus), also known as Mac OS Extended, is compatible with all versions of macOS and Mac OS X. It supports Fusion drives and encrypted volumes are easily accessible. However, HFS+ does not support snapshots and lacks native file support and data integrity checksums.
For an external HDD used exclusively for Time Machine backups, APFS is generally recommended due to its advanced features and future compatibility. However, some users report that APFS may perform less efficiently on HDDs compared to SSDs, potentially leading to slower performance over time."
So, regarding that last paragraph, the simple answer is to use an SSD for your TM backup but, I'm using a HDD for my TM backup, formatted as APFS and have not encountered any problems.