first option tells how emulate 2dof orientation purely from kinect. if you try it you’ll figure out 🙂
second tells you to ignore actual controller orientation and use one from Kinect. if you have ps move it will use just buttons and orientation will be taken from Kinect.
this is when you have controllers with big yaw or drifting which is very problematic with games like beat saber. so even kinect emulated orientation might be better.