Bluewallet supports various Bitcoin wallet implementations, BIPs and different integrations with external services. These wallets will have different functionallity and they serve for different use cases or porpuses.
The create wallet options allows you to add wallet by simply choosing the type you want. The Bitcoin wallet (a multi address HD and segwit) is the default option and the one you should choose. The advanced option allows you to create a Bitcoin Single address.
The Lightning wallet allows you to create a custodial wallet where you can immediately receive or send. The advanced option allows you to connect a non-custodial Lightning wallet to your own Lightning node.
Bluewallet provides a “magic form” where you can try to import whatever you got. It will do its best to understand the format and import your wallet into your bluewallet app.
Here its where your watch-only, bread, legacy formats and external service integrations can be imported for your app.