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When you create a new library the software will automatically create the file based database (SQLite) for you.

Infonote

The file based database (SQLite) in not really meant to be used on a server.
It can work, but there are some drawbacks. If you run into issues, please think about consider moving to a Postgres database instead.

Select the file base database type and define the file location. Make sure to include the file name and the correct file extension (.db)

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