I think the main reason for the drives shipping with 512B format is compatibility. Notably, cloning partitions or restoring drive images from a 512B hard disk/SSD to a 4096B format SSD is not possible.
Personally I changed my SN850 to 4096B format using nvme-cli
and saw a very slight performance improvement under Windows/NTFS (which I had to reinstall from scratch, no restoring possible from existing images), but I am still not sure if I made the right choice.
It’s supposed to be in thousands units of 512 bytes, regardless of whether the drive has been set to 4096B logical sectors.
6383576 * 1000 * 512 = 3268390912000 bytes (3.26 TB or 2.97 TiB)
I don’t think wear will be any higher since internally the drive already uses a 4096B “physical” sector format, but by setting it also to 4096B “logical” sectors (if this physical/logical distinction makes any sense on SSDs) the drive will not have to do the “translation” from 512B sectors and likely have less processing overhead, which probably why performance slightly improves (or at least, it’s supposed to).
Also see: Advanced Format - Wikipedia