It’s better to house rabbits inside, where they become members of the family and you can interact with them more. Outside, they have to deal with temperature highs and lows, the possible presence of predators and parasites, the possibility that their pen or whatever they are housed in might not get shut correctly and they could escape and be in danger. If they are with you in your home, you will become closer with them, you will know more quickly if there is some medical problem or anything else wrong.
That shed is likely meant to store tools or some kind of gear. It’s not designed to house living animals.
You could go with the large cage, and attach an x-pen to it, to give the bunnies more room. I do see a small door on the side which they could come in and out of. Even with an x-pen, they will need more room for exercise and play time outside of the pen. You do have to bunny proof any rooms or areas they are in.
If you plan on getting more than one rabbit, they will both have to be spayed and or neutered before they can be together, and you have to go through a bonding process. It doesn’t matter if they are the same gender or if they were littermates. Once rabbits reach puberty, around 12 weeks of age, they can develop aggression, which leads to fighting, which can result in severe injuries. They will still need to be spayed and neutered and kept apart until they have had their surgeries, healed from their surgeries, with additional time for the hormones to abate, before you can start bonding. Some rescues and shelters have already bonded pairs for adoption, who have already been spayed and neutered, of course. That saves you a lot of trouble and expense. They will also have single rabbits who have been spayed or neutered.