When I first start the programme, I is asked which method to use to store the tags, but in reality neither method seems to be used, but in both cases a completely identical json structure is created.
The question during the application’s first start is about how the tags are connected to the tagged files. They can be attached to the name of the file or the so called sidecar JSON files.
The tag library in comparison is persisted in the AppData folder of your app installation. It is also json structure which can be exported and imported on other installation. This structure does not have connection to your files and folders, it organize the tags in tag groups.