Below is my response to your question and for your reference url's are updated.
Clarification on Azure File Sync Group
A sync group defines the sync topology for a set of files. Endpoints within a sync group are kept in sync with each other. A sync group must contain one cloud endpoint, which represents an Azure file share and one or more server endpoints. A server endpoint represents a path on a registered server.
A server can have server endpoints in multiple sync groups. You can create as many sync groups as you need to appropriately describe your desired sync topology.
Clarification on Cloud endpoint
A cloud endpoint is a pointer to an Azure file share. All server endpoints will sync with a cloud endpoint, making the cloud endpoint the hub. The storage account for the Azure file share must be located in the same region as the Storage Sync Service. The entirety of the Azure file share will be synced, with one exception: A special folder, comparable to the hidden "System Volume Information" folder on an NTFS volume, will be provisioned. This directory is called ".SystemShareInformation". It contains important sync metadata that will not sync to other endpoints. Do not use or delete it!
Distributed File System (DFS)
Azure File Sync supports interop with DFS Namespaces (DFS-N) and DFS Replication (DFS-R).
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