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This is a custom VPN transport supported by our own network extension packet tunnel provider.
So it used to filters traffic with the help of NETunnelProviderManager and NEPacketTunnelProvider. It loops+filters the traffic locally (locally - not connected to any remote VPN server).
Use case: While doing the filtering only “locally” we would want to change it to a remote VPN when connected to an unsafe network to provide extra safety.
(remote VPN - route the traffic to remote server)