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It must be specific to Windows. I can't reproduce it on Linux.

wtf? Can you comment on the Insync Forums thread please?

Thank you!

Ok, I spoke too fast. It does add the extension but only if it gets modified/moved from Google Drive. If you just sync from your PC it stays as is.

That's a problem indeed.

Yup. That must have been how I triggered it -- I moved main folder around.

For the record, I tried with Google Drive File Stream, and it doesn't do that. So that's on Insync, not Google Drive.