SmartGuard and Optimize for Time Machine - Large Backups

M

MacbookPro2017

Bit poster
Software: Parallels 15 Home Edition and the latest MacOS (10.15.3)
I have SmartGuard enabled and Optimize for Time Machine checked on a Windows 10 VM.
Every change to the system, even simply booting then immediately shutting down, results in a large backup (10-12GB)

Am I doing something wrong or is this intended behavior? 10-12GB doesn't seem very "optimized."
 
I tried chat support, then phone support, then this, with no help from any. Reading other posts, I see the community is more competent than paid support staff. But relying on volunteers to support a paid product is underhanded. Between this and the self-destructing license I'll return to VMWare when my license expires.
 
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