I'm going ot go out on a limb and say that for the majority of users, any dmg they have is a software installer they could easily redownload. so a waste to backup
You are a different target market, always check for silly normie settings
https://news.ycombinator.com/item?id=2478567#2478608
Apparently Dropbox notices they already have that file, and instead of you uploading it they just make it appear in your account.
ISO files are included in that filter list, among other files like VMs and such. Seems like a massive exclusion net to cast when claiming everything is backed up.
Removing these exclusions is very easy and obvious.