This is a single doctype whose main purpose is to peruse your bench instance and load all the necessary config onto the related doctypes such as App, Site and Site Backup.
The Update button emulates the bench update command and updates all the installed apps.
The Sync button does the following functions.
Reads your bench instance, greps and loads all the backups onto the Site Backup doctype.
Reads, greps and populates the Site doctype with all the existing sitse in the current bench instance.
Reads, greps and populates all the installed apps in the App doctype.
The Bench setting doctype also displays all the config parameters in the common-site-config.json which is applicable to all
the sites in your bench instance.