What is created when application overlays are displayed for the first time?

When application overlays are displayed for the first time, a default application overlay is created that starts with 'RTC-'. This naming convention signifies that the overlay is part of the application’s system for managing updates and modifications. The default application overlay serves as a foundational layer upon which customizations and enhancements can be added later on.

This default overlay is crucial because it ensures a consistent base from which all users can start, making it easier to manage and understand the modifications made subsequently. It sets the groundwork for the application’s performance and functionality by helping to track changes efficiently.

The other options, while relevant to different aspects of application overlays or models, do not accurately describe the process that occurs during the first display of application overlays.