Per microsoft:
This check determines the file system of each hard drive, to ensure that the NTFS file system is being used. NTFS is a secured file system that allows you to control or restrict access to individual files or directories. For example, if you want to allow your coworkers to view your files, but not change them, you can do this by using the access control lists (ACLs) provided by NTFS.
If you are running the FAT file system, which is not a secured file system, you should consider converting to the NTFS file system.
Secured file systems, such as NTFS, are a key component of security, because they restrict user access to data. By using file system security, you can specify which users are allowed to access individual files and what type of access they are allowed (for example, read or modify). NTFS protects your data by preventing unwanted user access to it.