Why do you need to create a static resource as part of the Extension creation...

Comprehensive and Detailed 100to 150 words of Explanation From Copado Extension builder topics:

A static resource is needed because Copado Extension records such as Functions and Job Templates are data records, not standard Salesforce metadata components. Data records cannot be directly included in a managed or unlocked package in the same way as metadata. To solve this, Copado stores the generated extension data in a file format, usually JSON, and includes that file as a static resource. During installation, Copado can read the static resource and generate the corresponding records in the target org. Option B is correct because it explains the real reason for using static resources in the extension creation process. Option A is incorrect because the purpose is not mainly file-size reduction. Option C is incorrect because the purpose is not to make the extension closed source.