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digging further into https://github.com/longhorn/longhorn-manager/blob/481a52bbc6dbe73763dd72b1e9834fc5b38de4af/scheduler/replica_scheduler.go#L850 The function calculates pressure as

storageUnused := info.StorageAvailable - info.StorageReserved

So whilst the disk is over committed, as the volumes are thin provisioned and all storage is not being used the disk is not under pressure. Working as intended!