Thank you for your reply but your suggesting that I use the default settings so of course I already tried those. It does not matter if one or both of those settings are set to "No" or "Yes", Serv-U still reports the shortcuts as being Unix file types. That's the reason why SyncBack ignores the shortcuts on the server.
Both Syncback and Serv-U tech support has been fantastic. Both companies went directly to their engineers and figured out what was causing the issue.
The SyncBack tech seems to think it's odd that Serv-U reports the shortcuts as Unix files since they are Windows shortcuts and the FTP server is installed on a Windows machine. He also said that's not normal behavior but the Serv-U tech said this is RFC-compliant behavior. So which company needs to make changes???? All I know is that I've used SynBack for many years and with many different FTP servers and Serv-U is the only server that I've encountered this issue with. That's not me finger pointing; just my experience.
Through further testing, I found out that this problem happens with FTP and FTPS connections. It does NOT happen when I use a SFTP connection. At any rate, SyncBack created a beta version that works around this issue.