Version Control is provided by the Nucleus Server. Many Connectors provide functionality around this feature when a Nucleus Server is used.
This functionality is not available for directory items outside of a Nucleus Server location.
One goal of version control is to provide historical file versions for most file actions. Those file versions are called Checkpoints. When a file is created, saved, uploaded, copied and so on - a checkpoint is created.
Checkpoints are not created automatically in Live Sync mode because of how rapidly the file content is changed. But many Connectors supports creating checkpoints before and after a Live Sync session. Only the head revision file is updated in this mode. It is recommended that you save files before starting Live Sync.