Apache Camel SFTP implementation uses JSch. But JSch supports only binary file transfer, as I understand from this link:
How to set file type and file transfer mode in JSch?
Then how does Camel SFTP support binary as an URI parameter?
https://camel.apache.org/components/latest/sftp-component.html
Is my understanding wrong?
The documentation is most likely false.
Both the FtpEndpointConfigurer and the SftpEndpointConfigurer indeed propagate the binary parameter to FtpConfiguration.setBinary and SftpConfiguration.setBinary respectively. So in that sense, both support that parameter.
But while FtpOperations queries FtpConfiguration.isBinary and sets FtpClient mode accordingly:
client.setFileType(configuration.isBinary() ? FTP.BINARY_FILE_TYPE : FTP.ASCII_FILE_TYPE);
... the SftpConfiguration.isBinary is never called. So the configured value is never used.