I just need to get a confirmation on what I am seeing during a test SRM failover. The replication of the protected VMs continues but it looks like the delta's do not get injected to the vmdk's on the DR side. I am assuming this is due to the DR disks running on snapshots?
You are correct.
When "test failover" is executed, the replica disk snapshot hierarchy is forked. The test bubble VM operates in a separate branch compared to the ongoing replication.
Once "test cleanup" is executed, the test bubble part is discarded and the replica part is consolidated with the base VMDKs.