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When you set the application engine to enable restart your state record needs to be a database record, so that the application eninge can continue where it left off with all values in the state record on that state.
When you set the application engine to disable restart your state record can be a work record, because the application engine will always restart from the beginning, not using any variables from the staterecord.
Have a look at:
PeopleBooks > PeopleTools 8.52: Application Engine > Creating Application Engine Programs > Setting Section Properties
If the program terminates abnormally, this value specifies whether you must restart the section.
If a section controls a procedure that, if not run to completion, could corrupt or desynchronize your data, then select Critical Updates. Otherwise, accept the default value of Prepare Only.