Pros:
Less impact on writes caches such as I/O capabilities.
Faster logon/logoff times in comparison to Cloud Cache.
Cons:
Manual replication requirements and an active-passive methodology only.
Lack of seamless failover.
Can only consume SMB locations. Azure Files can be used as well. For more information, see: https://www.christiaanbrinkhoff.com/2020/03/01/learn-here-how-to-configure-azure-files-with-active-directory-ad-authentication-for-fslogix-profile-container-and-msix-app-attach/.