Why is Xcode listed under iCloud Drive options as an app that stores documents in iCloud?

Obviously one could put an Xcode project on an iCloudDrive replicated folder.

And obviously one can be working in Xcode on a project that itself saves documents to iCloud Drive.

But why is there an option for Xcode at the MacOS Settings > Apple ID> iCloud Drive Options Button > Documents Tab > Xcode.

What does this cause to be stored where, and if appropriate, why?

Im using latest Catalina and Xcode 11.5
I believe it is application-centric, for ones you build via Xcode, not something directly related to Xcode's otherwise higher level activity.

It just closes the loop so that the IDE isn't walled out.
If you build an app using Xcode and the app can write to iCloudDrive, then it will have it's own record in in the list. It will does not use the Xcode one.
Why is Xcode listed under iCloud Drive options as an app that stores documents in iCloud?
 
 
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