The Download menu in the course editor produces five different things, and there is a sixth route—Offline Build—reached separately. They are not interchangeable, and picking the wrong one is the usual cause of "this file doesn't work in our LMS".
The five in the Download menu
Full Backup—a complete copy of the course, including content, settings, and assets. Use it before a risky change or to hand a course to another team. It is not an LMS package and will not play.
Script—the course text as a document for review, red-lining, or translation briefing. This is the file behind the redline workflow. See Using a script to edit (red-line) a course.
Assets—the images, videos, and documents used in the course, on their own. Useful when you want the source media or when you are auditing what a course actually contains.
SCORM Test Package—a playable package for testing a course in an LMS.
Legacy Scholar Script—a .docx export of the product 'used by older course players.' You will only need this if someone specifically asks for it.
Offline Build
A self-contained copy that runs without an LMS or an internet connection. Unzip it and open index.html.
It does no tracking at all—no scores, no completion, nothing reported. Use it for demonstrations and stakeholder review, never for anything that has to be recorded.
Which one goes to your LMS
The SCORM Test Package is the only playable LMS package on the menu, but its name implies it is for testing rather than production. Confirm with engineering whether it is the production deliverable, or whether a production package comes from publishing instead. Do not publish this section until that is settled — getting it wrong sends client content to an LMS in the wrong form.]
SCORM 1.2 is the default packaging, and whether AICC is supported at all. This is currently stated only in a Use TinCan tooltip. Your organization can be set to produce TinCan (xAPI) instead, through Use TinCan in Account → Client Settings, and an individual course's own Use TinCan setting overrides the organization default.
A note on publishing
Downloading is not publishing. A downloaded package is a snapshot; publishing is what makes a course live and consumes a publishing credit. See Validation, Build & Publish.