'Why does delete/insert result in a larger database size than using upsert?

I have a table with 1.6 million records. This table has multiple Interleaved tables. Periodically I receive updates. If I apply the update by deleting and then inserting, the database size is approximately 35% larger than by using UPSERT.

The database Retention period is set to 1 hour. Even after the retention period has passed, the database size does not go down.

Any idea why this is?

Update: The backup size for the database is the same regardless of the update method.

Thanks



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