[Bug]: .sync-exclude.lst is ignored on initial sync

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[X] This is a bug, not a question or a configuration issue.
[X] This issue is not already reported on Github (I've searched it).
[X] Nextcloud Server and Desktop Client are up to date. See Server Maintenance and Release Schedule and Desktop Releases for supported versions.
[X] I agree to follow Nextcloud's Code of Conduct

Bug description

File .sync-exclude.lst is ignored on initial sync, it resides in the root user directory on Nextcloud server

Steps to reproduce

When I bind my desktop client to the server account, I presented with the dialog:
- Synchronise everything from server
- Choose what to sync
When I choose Synchronise everything from server the Initial sync synchronises literally everything, even files listed in .sync-exclude.lst in the root folder. It Is synced and then lit yellow:

BACKUP folder is excluded here, but synced anyway. This folder could be very big. I have to delete it and then it is not synced. But this initial sync looks like a bug to me.

If I choose Choose what to sync, then it seems .sync-exclude.lst is ignored completely, and the folder BACKUP is displayed in the settings where you pick folders to sync.

Expected behavior

The excluded items (such as BACKUP folder in the example) should not be synced during initial sync.

Which files are affected by this bug

BACKUP

Operating system

Mac OS

Which version of the operating system you are running.

13.6.6 (22G630)

Package

Appimage

Nextcloud Server version

29.0.1

Nextcloud Desktop Client version

3.13.0

Is this bug present after an update or on a fresh install?

Fresh desktop client install

Are you using the Nextcloud Server Encryption module?

Encryption is Disabled

Are you using an external user-backend?

[ ] Default internal user-backend
[X] LDAP/ Active Directory
[ ] SSO - SAML
[ ] Other

Nextcloud Server logs

Nextcloud server with default settings does not produce log when following the steps above.

Additional info

I use local External storage for users root directories.

Client log included: nc.log

nextcloud / desktop