... git should deduplicate data automatically

It indeed does

Git doesn’t think of or store its data this way. Instead, Git thinks of its data more like a set of snapshots of a mini filesystem. Every time you commit, or save the state of your project in Git, it basically takes a picture of what all your files look like at that moment and stores a reference to that snapshot. To be efficient, if files have not changed, Git doesn’t store the file again—just a link to the previous identical file it has already stored.