Hi, @RaghuwanshiShatrughan-2703,
Select the “ASP.NET Core Hosted” option for two reasons.
First, need to integrate some backend services in the future.
Second, using an ASP.NET Core Hosted site makes it easier to run a published version of the app in your local developer environment.
If you have backend server, there is no need to select ASP.NET Core hosted option.
Link: Build Progressive Web Applications with ASP.NET Core Blazor WebAssembly
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Best Regards,
Michael Wang