That is a common misunderstanding. I have written a post to clarify this:
Explaining the local database.
Earlier versions of Duplicati had a bug that caused the index files to sometimes be incorrect, causing a very long-running database recreate. For that reason, some users prefer to make a backup of the local database, but Duplicati does not encourage this, as it should not be needed.
I think we should strive to get the best possible defaults.
If you can explain the issue with having symlinks being followed by default, we can consider changing the defaults.
For the circular mention, I assume you are making a backup of a folder that syncs the backup data back to the local disk. Not sure what a great way would be to detect or prevent this.
That depends on: network speed, storage solution, source size, and restore expectations.
If you store on something that can handle large volumes of files (S3, B2, etc) I would argue that 50 MB is a reasonable size, especially since it makes it less time consuming to restore partial sets.
I would love to hear arguments for having a different default size though.