When using Ketarin / Chocolatey Package Updater (chocopkgup) combo for keeping packages up to date, this folder will contain the output of generating those packages.
This is the folder where chocopkgup will point to when configured to use the automatic folder (the parent folder of this) as the PackagesFolder.
You will want to configure chocopkgup (chocopkgup.exe.config file in the package folder) to point to this directory.