SharePoint 2013 - Document Set Capture Version History. Does each version captured for each document set keep a copy of all the document stored in the document set?

Hi All,
We have currently encountered an issue where even though version control is turned on in a document library, changes made to the metadata of a document set is not tracked in a version history. 
We have found that in order to this a user will need to manually click on the capture version history button. 
With this in mind, we are concerned about the impact of this on our storage. The question we have been trying to answer is whether each document set version:
stores the change in metadata of the document set and a copy of all the documents stored in the document set
stores the change in metadata of the document set and a reference to the documents stored in the document set (making use of SharePoint 2013's shredded storage)
The reason we ask this is that if a document set version stores a copy of all the document stored in a document set, a change in one of the fields in the document set could result in the storage used to grow exponentially. e.g. if the document set contains
documents totaling 30MB, and if we have 10 versions of the document set, we could take up 300 MB in the content database for just one document set.
We have tried to some searching around Google but wasn't able to find any answers around this question. Would appreciate some assistance from anyone who has knowledge around how document set version history works. 
Thanks in advance.
John

i had a long thing written out, but submit failed.  suffice to say it does "2".  it only stores the changes with pointers to the documents. 
Christopher Webb | Microsoft Certified Master: SharePoint 2010 | Microsoft Certified Solutions Master: SharePoint Charter | Microsoft Certified Trainer| http://tealsk12.org Volunteer Teacher | http://christophermichaelwebb.com

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