This means the .emb file format isn't considered just an embroidery file, but also the proprietary format of choice for saving design for cad cutting, screenprint, rhinestones and embroidery.
For instance, after creating a rhinestone design in Wilcom, the file would be saved as an .emb file for archiving and future editing. To create a rhinestone transfer you will need to output the design in a file format that can be read by your stone machine. The output format will be determined by whether you will use a cutter or a stone setting machine. This is no different than outputting to a .dst format or .exp (or many others) depending on which file format your embroidery machine accepts.
If you will be cutting templates with your vinyl cutter then export to a file format your cutter accepts. This would usually be a .plt file. A separate cutter file will be required for each size stone and each color. Turning on the Multiple Files will automatically create individual files as needed.
The locations where the files are exported to can be preset for consistency, or select a specific location for this particular output.
The multi-decoration export is a major step forward to allowing a designer to work on many different decoration methods from a single platform. It provides the ability to export to the many different file formats needed to drive our decoration machines.