The consistent feedback I get about file sync (from techies) is they really don't want to be uploading a whole file every time they change something. I agree, but to have client-side encryption such that you're data is protected from the server host as well as people who gain access to said server seems to preclude efficient sync with current tech. Which is again too bad.
I am no crypto expert so rolling my own / building off this FHE is not really possible. I do understand usage of things like AES and RSA well enough though to know that adequate security precludes diffing/efficient sync.