When using XMLA endpoint for deployment or processing, the semantic model storage format impacts deployment times.
Small storage format allows faster metadata operations and shorter deployment times.
Large semantic model storage format is only needed for extremely large models (> 10 GB dataset limit), and it increases deployment overhead.
The other options (B: service editing, C: cache for shortcuts) are unrelated to XMLA endpoint deployment performance.
Reference:
Power BI semantic model storage format
The answer: A. Select Small semantic model storage format.