I was wondering that too. Thanks for asking! Learn something new every day.
I am not sure, but I know the Baby Lock 10 needle is capable of cutting the applique. Don't know how but it is. Maybe these are part of those.
after a google search graceandham is right. They are designs that were original embroidery designs and turned them into SVG data to be able to use on the cutting machines
I think they just mean a cuttable design for a Scan n Cut or the other scanning machine. They took the embroidery design and offered it in the .SVG or other format. It's so you can precut your fabrics for the appliques and not have to cut while inside the hoop. An advantage except not a timesaver initially.
I did just that when I first bought my Silhouette - used my owl embroidery/appliqué design and turned it in an SVG-file - then cut it from paper and made it into a card before I tried fabric.
Since then I just turned card-crazy and forgot about the appliqués.