When Smart Sync was first introduced in 2017, I was excited about it. I was looking forward to keeping many files purely offline while still being able to see them in Finder and download when needed.
However, since I am a Time Machine user, and was back then, I quickly learned that Time Machine and Smart Sync didn't play well together as my Time Machine backup was completely destroyed when it tried to endlessly backup files that were Smart Synced in the cloud.
Apparently, later on some users had a different problem than me, where Time Machine forces Smart Sync to download files. This is not as bad as the entire Time Machine backup being destroyed, but not good either.
After that, I turned off Smart Sync/downgraded my Dropbox plan.
Now, Smart Sync has been introduced into the Dropbox Plus plan, and so I have it again. I would like to use it, but need to know first if Time Machine plays well with Smart Sync?
(I am guessing they still don't work well together, since the recommendation seems to be to exclude Dropbox from Time Machine backups if Smart Sync is active – is that still true?)