This setting enables you to group duplicates by their folder name. The depth setting allows you to specify how far up the folder tree to match. The 'Match full' option requires that the whole path (excluding drive name) is matched.
This option will cause duplicates to be EXCLUDED from the final list where ALL the duplicates in that group are in the same folder. This option is useful where you are searching for duplicates which are only in different folders.
Note: A group containing some duplicates from the same folder will be shown if they have at least one match in a different folder.