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The recommended RAID setup is RAID 10 (1 + 0) because it offers a balanced approach to performance and redundancy, making it well-suited for Splunk deployments. This configuration combines mirroring and striping, which enhances both read and write speeds, while providing fault tolerance through the mirroring aspect. In a Splunk environment, where fast retrieval and indexing of data are critical for analyzing large amounts of machine-generated data, the performance benefits of RAID 10 can significantly improve operational efficiency.

The other statements do not align with the best practices for Splunk's disk storage solutions. High-performance SAN can indeed be used effectively to support Splunk's performance needs, while NFS for storing hot and warm buckets may introduce latencies that are not ideal for search and indexing tasks. Additionally, there are scenarios where bare metal environments may provide better performance and resource utilization compared to virtualized environments, particularly for Splunk's I/O-intensive workloads. Thus, RAID 10 remains the optimal choice for data storage in this context.