Large DerivedData folder in ios directory?

When I did a search, that is what I came across in the Capacitor documentation, but as I went and looked at my Xcode settings, that is what it showed. Please see screen shots below:



As you can see, the DerivedData is defaulted to my /Users/<USER_NAME>/Library/Developer/Xcode/DerivedData location, but it is also appearing in my projects ios folder.

Any thoughts?