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Manual Contract Numbering vs Automatic contract numbering with Manual Document sequence

Summary:

Hi Everyone!
Can someone explain the difference between the two types of document numbering described below for contract numbering.
1. While creating the contract type, we setup the contract numbering method to be manual.

2. While creating the contract type, we setup the contract numbering method to be automatic, but the document sequence that is selected is of Type 'Manual'.

For the 1st, i know that the user will define the number when creating the contract. However, system will still perform a validation to avoid duplicate numbering.

For the 2nd, as per the definition at

Document Sequences

User will assign a number and the application validates its uniqueness.

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