This option will allow you to EXPORT all required files and tables from within DMC into a special internal folder PLUS all required files will be COPIED to the "Destination folder" you defined in the Dictionary step within your "settings".
You will need to select your original DCTX (like for all other options), then DMC will check for the existence of all necessary files which will need to be added to the EXPORT of this project.
During the export of your project, DMC will read the "Destination folder" and IF it finds any existing files (previously exported Project), then it will archive all these files in a zip file and display a message after having done so informing you of the location and name of this archive.
The entire content (without the eventual archives) will need to be uploaded to your end users machine and placed anywhere you seem fit.
The folder you decide to use will be the one you will need to use - along with the project ID generated by DMC - in the RT Converter demo application if you want to use that to deploy your SQL application.
These two "settings" - path and ProjectID can easily be stored in an INI file which that demo converter application will read.
You can download this demo converter from this link.