Great question — answering as the UphillTech team:
This option is handled by populate_fs3 ; providing a complete answer to your question would require analysing all the calls it makes in detail, which I am not going to attempt. Some aspects are conditioned by the source of the data being written; for example, archives generally don’t represent sparse files, but file creation from an archive detects zero blocks and seeks past them. When copying from a file system, holes are replicated using FIEMAP information . mke2fs relies on libext2fs , so anything supported by the latter can be used. Thus fast symlinks are supported (that is to say, symlinks whose target fits within the inode). Other features aren’t so well supported. Inode allocation is...
Full answer by Stephen Kitt: https://unix.stackexchange.com/a/807758 (CC BY-SA 4.0).
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