What is the purposes of the eye icon in Project panel?

Can I know what is the purpose of this eye icon that hides the packages?

image

From my understanding all packages downloaded from the Package Manager appears in the Package folder. On the file system, the list of items is actually from the Packages/package-lock.json and the tangible files are on the Library folder.

These locations are fixed, afaik, there is no other way the packages can exist in the Project. So, what is the purpose of toggling the visibility of the packages when they are all separated from the rest of the project anyway? Am I missing something? Is there something wrong with my understanding of how packages work? Can packages exist under Assets folder too, if so, how?

The button hides assets from packages. Packages commonly ship assets like icons that dilute search results. Being able to filter down to your own project’s assets can be useful if you’re only looking for the project-specific content. The icon also shows up in the asset picker window to achieve the same effect.

Not that it affects anything, but UPM packages can exist anywhere in the filesystem. Packages placed under the Packages folder in the project are automatically recognized (“embedded packages”), and additional packages can be referenced by file path in the manifest (“local packages”).

When searching (text search) for assets, there is already filter “In Assets”, “In Packages”, “All”.

OK, get it now, so it does a recursive search for any sub-folders with package.json. But I think under most circumstances, we will still keep the packages within the Package folder (embedded packages) and not put them all over the place, even if it is possible.