The process is using a sql dump command (.dump) from database com.plexapp.plugins.library.db and its table called metadata_item_settings into a file called settings.sql.
BTW… you might want to also review this thread for some additional context → Corrupt Database - Transferring User Information
You may also want to review this https://support.plex.tv/articles/sync-watch-state-and-ratings but I don’t use their sync feature myself and have chosen to keep it local in my database rather than their cloud.
