Did I hallucinate this? TimeCapsule does not appear in Disk Utility, nor should it.
Anyway, APFS is officially supported for TimeMachine in beta 3, but there seems no way to format a Time Capsule disk as APFS short of removing the disk and putting it in a new enclosure?
The disk in the Time Capsule will always be formatted HFS+. That has not and will never change (especially now that the Time Capsule is long discontinued)
What did change is the filesystem inside the sprasebundle that MacOS created to do backups to. THAT filesystem is now APFS with Big Sur. However, the sparsebundle itself is still sitting on an HFS+ formatted disk in the Time Capsule.
Think of it as a hierarchy:
- Time capsule
-- HFS+ disk shared over the network
----- sparsebundle on that HFS+ disk
------ APFS filesystem inside the sparsebundle
---------Snapshot of your Mac date A
---------Snapshot of your Mac date B
etc...
The first two lines in that hierarchy have not changed.
Hell, right now I'm doing Time Machine backups (from Catalina) to an SMB share on my Linux server, to a ZFS dataset! It doesn't really matter what the underlying filesystem is that a sparsebundle is on. A sparsebundle is basically just a disk image that's split into hundreds of small segments (bands) to make it more friendly to backup systems.
I already tested Time Machine from my Big Sur laptop to that same server and it works great. The irony is that it's using a copy on write filesystem (APFS) inside a disk image that's stored on another copy on write filesystem (ZFS).