It means that the device as Roon’s RAAT endpoint code embedded, such that you just need to plug the ethernet cable in and the Roon Core will see the device. The basic settings are pre set. However, you might want to change them based on your particular use case.
Purple is lossless meaning nothing is touching the original data
Enhanced means you done some enhancement to it, upsampling, DSP, etc
Green means you done more to the original data including downsampling, or using a lossy format.