The home directories feature is compatible with name spaces. However, note that home directories are not supported in a virtual file system.
Creating user home directories in a name space is considered a lazy process. When you first connect to the share in the name space, no home directory is created. If the user then browses or changes directory to the link from the name space to the regular file system, the server uses an SMB DFS referral to redirect them to a hidden share on the regular file system. When the DFS referral completes, and the user connects to the regular file system, their home directory is created.
Name space and file system layout example:
cns: \cnsdir \link --> Span0FS: \homes
When the user connects to the cns name space, no home directory is created. However, if the user later moves into cns:\cnsdir\link, their home directory is created, as that is the transition into a regular file system.