Why doesnt Rsync preserve most of the attributes of the file/folder at the destination?
Because rsync works on top of the Cygwin Unix emulation layer, it doesn’t know anything about Windows file attributes (e.g. readonly, hidden, system, etc) or about NTFS security attributes (i.e. access control lists) so it is not able to transfer any of these to the backup destination. NTFS alternate data streams are not supported, and as Unix doesn’t have a concept of file creation time, this is also not preserved. The only attribute that is preserved is the last modified time of the file.