Problem with consumption on target storage using vsphere replication.

I have two sites (Primary Site and DR Site) connected over a network link. There is vcenter, replication appliance, and SRM appliance on each site (different SSO domains though).

SRM works using vsphere replication and works fine. The two SRMs and replication appliances are paired just fine and everything works ok.

The problem is with the storage size consumption at the target storage unit (this is block storage array using fiber channel).

Although all the VMs at the primary site are configured with thin provisioned disks, the actual storage size consumed at the target storage (i.e from the replicated VMDK files) does not take into consideration the thin disk but instead it consumes the whole disk size for each VM.

For example, I have a protected VM at the Primary site with 2 disks (100GB and 500GB) as thin provisioned. The actual written data on the disks is 50GB. The storage consumed at the target site from vsphere replication for this VM is 600GB (100+500) instead of only 50GB. When I configured the replication I specifically set the disks to be thin provisioned but still the whole disks are replicated.

All components are latest versions (vsphere 7.03, Replication appliance 8.5).

Any help would be greatly appreciated.  

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