What does the 'GenerateBindingRedirectsOutputType' option do?

As we can see here we need both AutoGenerateBindingRedirects and GenerateBindingRedirectsOutputType flags to make some things for "autogenerating binding redirects" work.

GenerateBindingRedirectsOutputType will be set to true in case you are building exe or winexe as written here.

So if you need binding redirects to generate while building library dlls you need to specify the GenerateBindingRedirectsOutputType flag manually.

It is not needed for projects that generate .exe executables but needed for unit test projects.