Hi @Samath ,
Yes Data Deduplication works in a Windows Failover Cluster scenario, note that every cluster node in the cluster must have the Data Deduplication server role installed.
For more information, see:
Data Deduplication interoperability
https://learn.microsoft.com/en-us/windows-server/storage/data-deduplication/interop
Install and enable Data Deduplication
https://learn.microsoft.com/en-us/windows-server/storage/data-deduplication/install-enable
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Leon