Backup Status reports more "up to date" data than exists??
 

I am currently doing a back up of a Time Machine drive onto an empty partition on another drive (Smart update).

Get info of the source drive itself reports that 223.08 GB is in use. However, SD is currently reporting that 287.17 is up to date and it is still chugging along... Interestingly the "evaluated" number is behind the "up to date" number and is still under the realm of expectation (223.08GB). How could it know it is up to date if it hasn't evaluated it yet?

I took a look at the hidden files and I don't see anything obvious that might be going on... ??

Should this be concerning with respect to data integrity?

No, you're fine. It's due to all the folder hardlinks...