What is Xcode doing when it is indexing a new developer device?

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I was installing an app on the device of a friend for testing purposes. Before Xcode did so, I had to register the device and Xcode indicated that it was 'indexing' the device.

What does 'indexing' do in this context ?

I understand the general concept of indexing, and I know this process will enable the developer section in the settings (and other things) but that would rather be 'Preparing device for developing' and not 'indexing'.

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