We have noticed a few issues the way Microsoft is creating any version of the documents and consuming the allocated tenant storage.
Here is what I did:
I create a new document in a version enabled document library in an SPO Teamsite(with Group) and sync the same document library to my desktop using OneDrive desktop app. I co-author on the document with other users.
Problem 1
During Co-authoring, SharePoint creates multiple versions of the document. Every version of the document is consumed from the total storage quota allocated on the SPO site. If a 50 MB document has 500 versions(the default document library limit), it would consume 25 GB from the Site storage quota.
Problem 2
For every change in the document, OneDrive is downloading the full file to desktop instead of only the changes in the document.
Note: The upload of the change in document is working as expected. It is only uploading the change and not the full document.
