GoDawgs,

This is the explanation of that checkbox from MicroFocus:
When you uncheck the Package option, you're instructing UFT to use the non-packaged version of the application.
The difference between packaged and non-packaged apps is that in the packaging process (a.k.a instrumentation process), we are including some javascript libraries to be able to identify web objects from hybrid apps.
So, if your app is a native app, the checkbox should be unchecked.