This behavior is expected with the current releases. This setting is for large devices for which encryption can take a long time, and hence exemption by size improves the performance. With current USB device sizes, it was considered unlikely that customers would want to configure a device with a size less than 8 GB to be exempted.

NOTE: The options covered in this article have no bearing on the minimum device size that can be encrypted with FRP. FRP can encrypt any device size.