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ReFS is the underlying filesystem that Dev Drives use and should be supported.
VFS for Git let ReFS drives through fine under https://github.com/microsoft/VFSForGit/releases/tag/v1.0.24074.1. I'm not sure why the volume check did not error out, but something changed and after installing the latest prereleases, existing enlistments on Dev Drives are now blocked. They should not be.
(git bisect did not find the issue, nor did I expect it to given this code path did not change)