File Field File Storage

I was able to find the File field type under the “+ New Field” option. When I select the folder option to upload the file it opens the NextCloud Files directory.

My question if I select a file from the NextCloud Files directory (and doesn’t include an “Upload from Computer” option) does it simply create a link/reference or does it store a copy in Passwords? Also, if it is storing a copy, if I have encryption turned on, does the image also get encrypted? Finally, to confirm, if it is storing a copy I can delete the file from the Files directory without affecting the password entry correct?

Thank you very much!

The “File” option for custom fields in the password entry only create a link to that file within the entry.
No copy of the file will be created within the app and the file will note be encrypted by the app. Moving or deleting the file will break the link.
The Passwords app does not contain any file managing capabilities.

Ok, thank you very much for the answers/clarifications @mdw !