My guess is that this setting means to use a new window when opening rather than a new tab in any existing Chrome window. I have not played with that, though, but it would be consistent with that same parlance used in Chrome and other browsers with regard to new window versus new tab when links are activated.
Brian - Windows 10, 64-Bit, Version 21H1, Build 19043
It is the function of creative men to perceive the relations between thoughts, or things, or forms of expression that may seem utterly different, and to be able to combine them into some new forms--the power to connect the seemingly unconnected.
~ William Plomer