Main advantage of exFAT is being able to store a full NAND backup as one file. But from what I understand, it's possible for fat32 to corrupt the same way exFAT does, just much less likely. So for me I think the safest route is to have a separate, dedicated exFAT card that is solely used for NAND backups.
Thats entirely wrong. But also right at the same time.
Just entirely wrong in terms of what it suggests.
On the NAND backup thing. The Hekate bootloader has actually an exfat driver baked into it. What follow is twofold. The switch firmware you are coming from doesnt even have to have exfat support downloaded (if you are upgrading to a later firmware with choixdujournx it is suggested, to always choose exfat versions (= they can support both fat32 and exfat), because why not) - for you to make a NAND backup on an exfat card.
The second takeaway is - simply buy a 32GB card (8USD the last time I checked), or use one you have lying around and format it exfat - to make a NAND backup, and leave it stored on the card (and backed up on a harddrive), so you can always restore a full NAND backup quite easily.
Then reformat the card (or better use another one) to fat32 (32k cluster size) to use it from then on.
Yes fat32 (32k cluster size (has nothing to do with it, but is recommended, because its the biggest (= fastest) one the switch will support without issues)) can corrupt as well - but it is way less likely to with repeat writes that could be interrupted (using it with emulators often).
The reason for that is FAT32 supports journaling and exFAT doesnt. (see:
https://superuser.com/questions/638...need-repair-whenever-i-accidentally-unplug-it )
So the takeaway is still to use fat32 for all your daily use scenarios.
That is - maybe less so in a few days... Retroarch has implemented/is implementing "clean exit" on home button press. So retroarch is/will be actually saving files to your sdcard in the future, and only then exit the app, when you press the home button - which was probably the main way people where causing themselves filesystem corruption on exfat cards.
So in a few weeks from now, more people will argue again, that it doesnt matter. That said, the sensible mans solution is still to use fat32.
As said before, the files within xcis or nsps are actually below 4GB in size, once installed. Because developers have to cater to a market where Joe Shmoes doesnt know how to format an sdcard and bought his with fat32 on it out of factory. So as of now, and probably also in the future all games will work installed on fat32 as well. Its just the way to get them installed (either via tinfoil usb install, or via NSP splitter (
https://gbatemp.net/threads/legal-nsp-splitter-for-fat32.520213/) that changes depending on the fileformat.).
edit: Even more so, the switch should use fat32 on its internal storage, so yes - all games will be fat32 compatible in the future..