This issue is resolved in Windows Server 2012(R2), however formatting with the large FRS using the command “Format <Drive:> /FS:NTFS /L is still needed. Important: the command Format <Drive:> /FS:NTFS /L erases all data from the drive.
Depending on the total size of the volume to be formatted you may have to set the cluster size during the format process. Please reference this article to determine which cluster size is needed. http://support.microsoft.com/kb/140365/