Scalar explicitly does not implement the virtualized filesystem the OP is referring to. The original Git VFS for Windows that Microsoft designed did in fact do this, but as your third link notes, Microsoft abandoned that in favor of Scalar's totally different design which explicitly was about scaling repositories without filesystem virtualization.
There's a bunch of related features they added to Git to achieve scalability without virtualization, including the Scalar daemon which does background monitoring and optimization. Those are all useful and Scalar is a welcome addition. But the need for a virtual filesystem layer for large-scale repositories is still a very real one. There are also some limitations with Git's existing solutions that aren't ideal; for example Git's partial clones are great but IIRC can only be used as a "cone" applied to the original filesystem hierarchy. More generalized designs would allow mapping arbitrary paths in the original repository to any other path in the virtual checkout, and synchronizing between them. Tools like Josh can do this today with existing Git repositories[1].
The Git for Windows that was referenced isn't even that big at 300GB, either. That's well within the realm of single machine stuff. Game studios regularly have repositories that exist at multi-terabyte size, and they have also converged on similar virtualization solutions. For example, Destiny 2 uses a "virtual file synchronization" layer called VirtualSync[2] that reduced the working size of their checkouts by over 98%, multiple terabytes of savings per person. And in a twist of fate, VirtualSync was implemented thanks to a feature called "ProjFS" that Microsoft added to Windows... which was motivated originally by the Git VFS for Windows they abandoned!
There's a bunch of related features they added to Git to achieve scalability without virtualization, including the Scalar daemon which does background monitoring and optimization. Those are all useful and Scalar is a welcome addition. But the need for a virtual filesystem layer for large-scale repositories is still a very real one. There are also some limitations with Git's existing solutions that aren't ideal; for example Git's partial clones are great but IIRC can only be used as a "cone" applied to the original filesystem hierarchy. More generalized designs would allow mapping arbitrary paths in the original repository to any other path in the virtual checkout, and synchronizing between them. Tools like Josh can do this today with existing Git repositories[1].
The Git for Windows that was referenced isn't even that big at 300GB, either. That's well within the realm of single machine stuff. Game studios regularly have repositories that exist at multi-terabyte size, and they have also converged on similar virtualization solutions. For example, Destiny 2 uses a "virtual file synchronization" layer called VirtualSync[2] that reduced the working size of their checkouts by over 98%, multiple terabytes of savings per person. And in a twist of fate, VirtualSync was implemented thanks to a feature called "ProjFS" that Microsoft added to Windows... which was motivated originally by the Git VFS for Windows they abandoned!
[1] https://github.com/josh-project/josh
[2] https://www.gdcvault.com/play/1027699/Virtual-Sync-Terabytes...