CF_HYDRATION_POLICY_MODIFIER_STREAMING_ALLOWED
0x0002
This policy modifier grants the platform the permission to not store any data returned by a sync provider on local disks.
The flag does not work, and I can reproduce with CloudMirror.
please open an incident at link https://developer.microsoft.com/en-us/windows/support/?tabs=Contact-us and please choose the 'System Services Development - Cloud Filter API' for Windows SDK for this issue. In-addition, if the support engineer determines that the issue is the result of a bug the service request will be a no-charge case and you won't be charged.