What does the Xcode "Minimize Project References" checkbox do?

Where is this checkbox ?

Select a project in the project navigator, select a project or target and select the file inspector tab. It is in the project documentation section.

I found where it was recommended to resolve an issue, but the engineer didn't go into what it does

https://developer.apple.com/forums/thread/776349

Sorta odd that we have this option, but no documentation on it, and no one (except Apple engineers) know what it does.

I had seen that post - it was the only link I found to the exact text of the title.

This option is useful if your Xcode project references targets in a different Xcode project. Enabling this option allows the Xcode project file format to store the information that refers to the other Xcode project in a minimized form. For some types of projects, enabling this setting will help you reduce source control merge conflicts within the Xcode project file.

— Ed Ford,  DTS Engineer