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First option will try to compile/parse your file each time you make a change, like many extensions for other languages do. However, parsing in this case is performed by external programs (compile.exe, weidu), so that requires a (temporary) file to be present on disk. It can be a little disk intensive.
Second option will only compile when you save the file.
Try and see what fits you.
Remember that even with both options disabled, you can still compile/parse the file manually with Ctrl-R "compile" command.
Note that for Fallout SSL, due to the way includes work, the temporary file must reside in the same directory as the source file. It's called .tmp.ssl.
For that reason, you may want to add **/.tmp.ssl to .gitignore, as well as hide it from VScode explorer bar.
