Microsoft is working hard on improving Azure File sync. They just announced the new release of the v7 agent. For now only current installed agents get the update. Once all current clients have been updated, the update will be available on Microsoft Update and Microsoft Download Center
Improvements and issues that are fixed
Support for larger file share sizes
With the preview of larger, 100 TiB Azure file shares, we are increasing the support limits for file sync as well. In this first step, Azure File Sync now supports up to 50 million files in a single, syncing namespace. Other existing limits, for example the number of items per directory level, still apply.
Improved Azure Backup file-level restore
Individual files restored using Azure Backup are now detected and synced to the server endpoint faster.
Improved cloud tiering recall cmdlet reliability
The cloud tiering recall cmdlet (Invoke-StorageSyncFileRecall) now supports per file retry count and retry delay, similar to robocopy.
Support for TLS 1.2 only (TLS 1.0 and 1.1 is disabled)
Azure File Sync now supports using TLS 1.2 only on servers which have TLS 1.0 and 1.1 disabled. Prior to this improvement, server registration would fail if TLS 1.0 and 1.1 was disabled on the server.
Miscellaneous performance and reliability improvements for sync and cloud tiering
There are several reliability and performance improvements in this release. Some of them are targeted to make cloud tiering more efficient and Azure File Sync as a whole work better in those situations when you have a bandwidth throttling schedule set.