When uploading files to a server, the local directory path must be excluded (Internet zone).
This policy setting controls whether or not the local path information will be sent when uploading a file via a HTML form. If the local path information is sent, some information may be unintentionally revealed to the server. If you do not configure this policy setting, the user can choose whether path information will be sent when uploading a file via a form. By default, path information will be sent.
How this relates to the STIG checklist: STIG vs SCAP benchmark.