The Closest Join method (the default) automatically calculates closest join between objects while digitizing. When deactivated, entry and exit points of all newly digitized objects are set manually. If you want to deactivate it for this purpose, choose Embroidery Settings from the Software Settings menu and deactivate the option on the Design tab.
When deactivated, all newly digitized objects are joined by the As Digitized method. As shown in the first example below.
This means that you manually specify entry and exit points while digitizing. Generally it’s good to check entry and exit points before stitching out.