XCode supports those 2 values for this Build Setting:
Build Settings > Build Options > Debug Information Format.
Could anybody explain the differences?
DWARF (debugging with attributed record formats) is a debugging file format used by many compilers and debuggers to support source-level debugging. It is the format of debugging information within an object file. The DWARF description of a program is a tree structure where each node can have children or siblings. The nodes might represent types, variables, or functions.
source: https://www.ibm.com/developerworks/aix/library/au-dwarf-debug-format/index.html
DWARF with dSYM File stores the debug symbols for your app
Services like crashlytics use it to replace the symbols in the crash logs with the appropriate methods names so it will be readable and will make sense.
source : What's the dSYM and how to use it? (iOS SDK)