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Dear Nebu,
Thanks for sharing updates with us and I really appreciate your effort and your precious time doing those tests.
Generally, to render preview/fly-outs when hovered over the file when in library we add high resolution thumbnails in the background, it’s By-Design behavior to show files bigger in size than actual when looking at the SharePoint storage metrics page.
If the files have many images, then we generate a larger thumbnail in the background which makes the file even bigger.
The storage metrics page shows the true storage value being used as a number of micro services run after upload to create thumbnail, previews, etc., which causes the increase in the storage used.
As confirmed from test environment, the file size increases in Storage metrics page irrespective of the versions sizes not adding up to the storage reflecting in the storage metrics page.
Also, as observed the PowerPoint files did not have any versions, so even if versions are not there, there are other variables with the microservices running against the files.
This is by design and there is no way to predict how much space will be used after a document is uploaded. We can only say that the numbers shown in Storage Metrics do reflect the space being used by those documents.
Below attached are our test steps for your reference:
We create a new PowerPoint file that contains many pictures in desktop and upload it to SharePoint, the size of the file size is 47.6kb, and the size on disk is 48kb
When uploaded to the SharePoint site, the size of the file in SharePoint library is 53.7 KB with only one version existed, and the size of file in Storage Metrics is 308.6 KB as shown below.
Hope above information can help you!
If the scenario above is not consistent with yours, you can also post back and point that.
Your patience and understanding are highly appreciated. I hope that you are keeping safe and well!
Sincerely,
Rhoda| Microsoft Community Moderator