Here's what I received from Adobe S7 Support:
"SVG is not supported for Dynamic Media delivery[0].
Though, from Scene7 standpoint the SVG support is limited. As Image Serving only recognizes static SVG content, any interactive content, animations or scripting are not supported via Image Serving. SVG will be rasterized to be served as a image instead.
SOLUTION: Treat SVG as a static asset, like PDF or GIF. With that I mean, you have to serve it via content server using /is/content/. See example of your asset[1]
[0] https://docs.adobe.com/content/help/en/experience-manager-65/assets/administer/assets-formats.html