CBT, Network Mode, Whitespace - Expected Behavior?

[SGL3]

I'm noticing that Veeam is reading all the white space (even on thin provisioned disks) during backups which takes an enormous amount of time unnecessarily to complete the jobs. Actual data written to the Veeam backup file is in keeping with what is actually contained on the VM disk but the Veeam proxy server is reading every bit of the empty data across the network even though it does not write it to the .VBK file.

What is the expected behavior for thin provisioned disks (in my case using NFS), where the backup fails to Network Mode and CBT is enabled? Should Veeam be reading all that whitespace?

[foggy]

What type of proxy do you use? Please note, that CBT is disabled for hotadd proxies, which could cause Veeam B&R to use its proprietary change tracking algorithm that requires reading of the entire VM disks.