When I tried to put a third-party framework(installed by carthage) in the embedded binaries, I got such an option. I got confused, since \"Embedded binaries are binary files
Copy items if needed
usually (but not always, e.g. the project already contains this item) copies files into your project directory as a result you can use relative path
(instead of absolute) safely. For example when you use some version control your team members will not have some troubles with solving issues with paths
In case of third-party framework you can use $(PROJECT_DIR)
in Build Settings -> Framework Search Paths
[Create groups vs Create folder reference]