Why is my vhdx taking up so much space?

I have built a CentOs 7 guest VM in Hyper-V as Gen1 with two drives, both dynamically expanding drives.

I have loaded about 170 GB of data into one of the drives, but on disk on the host, it is taking up 410 GB. What is going on?

This is in the guest:

$ df -h | grep ‘sdb1|Used’
Filesystem                     Size  Used Avail Use% Mounted on
/dev/sdb1                      504G  168G  311G  36% /var/lib/data

This is from the host:

    Directory: D:VHDs

Mode                LastWriteTime         Length Name
—-                ————-         —— —-
-a—-       22/01/2019     08:35   420541890560 Lupin-Data.vhdx

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