StorageProvider: What is populating and what does PopulationPolicy do?
See the question and my original answer on StackOverflowPopulation is about files and folders (placeholders), not their content (Hydration).
If you don't use AlwaysFull (so the only valid value left is Full), the platform will call your engine back with CF_CALLBACK_TYPE_FETCH_PLACEHOLDERS, otherwise this type of callback will not be used.