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Local CloudDrive Questions + Downloaded CloudDrive recovery/usage


I've been trying to find more information on Local CloudDrives and I'm not doing a great job at searching for the right keywords to find the posts with the answers. 


For a particular scenario, I'm looking to replace my usage of veracrypt (file container) with a local clouddrive, partly because the smaller chunk files would make it play nicer with transfers and backup/duplication software, drivepool being one of them, (full disk encryption wouldn't really suit my purposes in this case). I'm curious if there's any pros/cons I should be aware of when using a Local CloudDrive the way I would a veracrypt file container (security/performance/reliability/etc?). 

For a local CD, is there a way to create a local drive that dynamically allocates space, like the way it works with a cloud storage provider? I created a local test drive and it allocated all the space right away.  


Lastly, is there a way to mount/use a downloaded CloudDrive folder, offline? Say we had to download the entire Stablebit folder off of Google, could we use (read/write) or recover (read only) the files that were in that drive? I vaguely recall seeing a post about a decrypt tool, for this very purpose, but I'm not able to track that post down.

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