https://www.techpowerup.com/325802/microsoft-updates-the-30-year-old-fat32-file-system-with-2tb-volume-size-limits
 
With the latest Insider update to Windows 11, Microsoft refreshed its 30-year-old FAT32 file-system with support for a maximum volume size of 2 TB. The file-system was limited to 32 GB until now. This update, however, does not change the maximum file-size limit of 4 GB. The move is probably aimed at making life easy for enterprises using the file-system for whatever reason, or for high capacity removable media to have better cross-platform support (eg: to video equipment). If you mainly move files within a Windows ecosystem, it's highly recommended that you stick to NTFS as it offers security features and support for larger files, which FAT32 doesn't.
 
I suppose the update is better late than never.