Using less storage for more data is awesome. After all storage does not come cheap. Files Servers often become black holes of storage space in the environment where they consume space rapidly and ever increasingly. While using deduplication on Nutanix Files container might seem like a good idea at first, unfortunately, it is not recommended.
Excerpt from Nutanix Files Tech Note:
Every file server maps one-to-one to a container. This mapping allows you to manage compression and erasure coding individually for each file server deployed. Inline compression and erasure coding are turned on by default to save capacity. Deduplication is not recommended. [...]
From Files 3.6 onward, you can control compression on a share-by-share basis. When you create a share, compression is enabled by default.
This is backed up by NCC health check file_server_container_check which fails if deduplication is enabled on a container used by Nutanix Files.
As always, you can bookmark useful KBs by hitting that start icon next to your user icon when logged into Nutanix Portal.
Further reading:
KB-6944 NCC Health Check: file_server_container_check