What is the purpose of the .urc file in a UEFN project?

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What is the purpose of the .urc file in a UEFN project? What happens if it is deleted?

It is the place where Unreal Revision Control stores its data. If you’ve enabled Unreal Revision Control for your project this directory is expected to be there.

Within UEFN, you can disable Unreal Revision Control in the ‘Revision Control Settings’ menu on the bottom right side of the editor. Once you’ve disabled it, the .urc directory can be safely removed. This is not recommended though.