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What filtering is applied by the file chooser is up to applications using it (and to users).

The application sets the filters on the file chooser that the user can then choose from.

If no filters are set (or if the user chooses an "All files" filter), then no filtering
is done.

Customer is stating that what they see is completely unrelated to filtering.

Reviewing the ticket it seeems that our backline support team's observation matches some internal comments in the bug.  It seems that when GIO is reading the first 4096 bytes of the file to make a determination on filetype, blobfuse is downloading the entire file.  In discussion with the SST, changing this changing this behavior would complicate functionality for all users.  Engineering is declining this request.  Please reach out to me directly with any questions.