Yes, as @Animosity022 told, the copy command doesn't work like the mount one, hence the difference in how they behave.
as per the docs "files are encrypted locally before they are uploaded"
not sure how copy should be different from mount
It's normally streamed and encrypted. The mount can't do that.
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I guess this is caused by the fact that the copy and mount subcommands have direct access to the file being sent to the remote storage, while mount doesn't - the data is streamed by Windows' Explorer here. So, it first needs to get the full file at once (which implies copying the data to a temporary location first), and then encrypts it on-the-fly and send it to the remote storage.
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