Terminal session, Provider “Direct Connection” means that you can automate with direct connection to the mainframe, you don’t need a terminal emulator. It is similar with what Internal Provider was in the older package version (1.3), only much better.
In case you select Provider “EHLLAPI”, there is an option “Run in Process” which is by default unchecked (package version 2.1). If this is unchecked, it means that a new process is by default created when using this type of provider (the same was when using the old version of the package). In this new version of the package you can check this option, and the additional process won’t be created. It is useful to have this option in case the additional process is blocked by security software.