The system must be configured to use FIPS-compliant algorithms for encryption, hashing, and signing.
This setting ensures that the system uses algorithms that are FIPS-compliant for encryption, hashing, and signing. FIPS-compliant algorithms meet specific standards established by the U.S. Government and must be the algorithms used for all OS encryption functions.
How this relates to the STIG checklist: STIG vs SCAP benchmark.