Meaning of "prefer extensions"?

What is the difference between electing default wallet as [Brave Wallet] or [Brave Wallet (prefer extensions)]?

Where is the support documentation that explains this?

Also…you need to explain to people that they must expand the new wallet view to browser window full screen to see the Portfolio tab, and that they will not see their tokens until they have imported all of them using “Add custom token” from the bottom of the Portfolio page. This is all different from Metamask. These two simple bits of advice would have saved me months in even considering to try the new Brave wallet…

Please have a look at the FAQ section for wallet.

Why isn't my MetaMask or other extension not working with Dapps? explains about the different options

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