Is Sync Compatible with Version Control

I use the Sync feature and have found that it works very well. I am looking to make some big changes to my graph and would love to have my graph in a git repo. Is the version control feature compatible with sync? In general file syncing a git repo (and the .git folder) is a bad idea, does the git repo get excluded from syncing?

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I did end up turning on version control and it seems to be working perfectly.