That's right, it's copying the whole file. It has to copy the entire file every time: there's no way -- without reading the entire file and looking -- to see if "part" of it has changed. That's just not how things work, and reading/comparing two huge files would take as long as just copying it.
At present, the APIs we're using to copy files do not give any status during a file copy, so we have no way of letting you know how much of a file is copied, sorry.
Don't run SD! while your VM is running. It'll likely end up filling the destination... bad idea.
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--Dave Nanian
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