Yes, their symlink handling is absurd, and they have the usual sanctimonious defense when questioned about this. To be fair, most commercial cloud services overthink this, and also get it wrong.
A symlink is just a file, like any other. It is a user's responsibility to insure that a symlink will work elsewhere; cloud services should just copy the file, just like any other. The users who expect a symlink to trick a cloud service into special behaviour (like syncing folders elsewhere) are also wrong. You no more want a cloud service going off and "thinking" about a symlink, than you wanting it going off and "thinking" about porn it finds on your computer. These are just files; their contents or meaning are absolutely not any cloud service's concern.
For example, a MacOS application bundle typically includes internal symlinks that most users are unaware even exist. Yes, DropBox breaks these, too. They tell you that their service is not intended for synchronizing entire file systems, as if properly handling an arbitrary file is somehow rocket science. I'll grant them that this is over their heads, but it's not hard.
There's exactly one sync program that gets it all right: Unison, written by Benjamin Pierce, a world-famous computer scientist. Yes, he actually thinks about this more clearly than any of the programmers of commercial services, and the best community ideas are adopted.
Unison handles symlinks properly.
Atomic directories are a relatively new feature in unison: One can declare a directory atomic, forcing the user to choose at the directory level when there’s a conflict.
I declare .git directories atomic. A better example: A MacOS .sparsebundle disk image file appears as many files (bands) inside a directory, but is intended to be seen by the user as an atomic file, not a directory. This has the advantage of more efficient backups: If one makes a minor change to a large mounted disk image (say, a few MB to a multiple GB disk image) then backup software isn’t forced to make a new copy of the entire multiple GB disk image.
If one makes minor changes to the same mounted disk image on two machines, and then does a two-way sync, one could buy the farm. Most likely, there will be a conflicting root file alerting one to the problem. Far cleaner to simply be forced to choose one disk image directory over the other. Functionally, the entire disk images are in conflict, not specific files within.
The ability to declare atomic directories is not a feature of any other two-way sync software, and it should be. A good heuristic: If a naive user can’t easily open a folder to reveal its contents (say, a Mac application bundle, or a sparse disk image) then the supporting directory should be treated as atomic by default.