Does anyone happen to know what algorithm they're using? I would assume LZX but you never know since it's never stated anywhere because reasons.
Old article. They support multiple algorithms in W10 and above: XPRESS4K, XPRESS8K, XPRESS16K, LZX. Only the first one (XPRESS4K) is available in previous OS.
OP didn't state what he referred to, exactly. AFAIK, the XPRESS4K is used for common transparent compression on-the-fly. I made the experience that compression only works with cluster sizes of 4KiB, change that and it becomes unavailable.
I normally use CompactGUI but as I learned more about LZX I realized that the Disk Compression feature on W10/11 _must_ support LZX as well. Sadly compressing 1-2TB SSDs takes time not to mention if anything fails I'll have to redo everything not to mention shorten the SSDs lifespan by 1-2TB because said "feature" doesn't work as intended. Now obviously there isn't anything out there that auto-compresses files with LZX if they have been modified as of yet, but I assume Disk Compression at least does this or work in a similar manner since the entire drive always stays compressed.