How does one get setfacl to set ACL permissions recursively on Linux?
Try:
setfacl -Rm u:foo:rwX,d:u:foo:rwX test
to modify the current ACL as well as the default. I believe "d:" only affects the (d)efault ACL of directories and leaves files untouched. Then, if you create a new file in the directory, it inherits the ACL of its parent directory via the default.