NSAllowsArbitraryLoads vs NSExceptionDomains

Question

I have below info.plist config. As NSAllowsArbitraryLoads is set to Yes.. what's the significance of having NSExceptionDomains.

Because the moment we set NSAllowsArbitraryLoads to Yes , What's the need of setting exception domains.. because .. iOS app is going to allow all kinds of URL. then we have to specifically say .. take care of this(NSTemporaryExceptionAllowsInsecureHTTPLoads) and that(NSTemporaryExceptionRequiresForwardSecrecy) in my exception domain.

<key>NSAppTransportSecurity</key>
<dict>
    <key>NSAllowsArbitraryLoads</key>
    <true/>
    <key>NSExceptionDomains</key>
    <dict>
        <key>https://test.com</key>
        <dict>
            <key>NSIncludesSubdomains</key>
            <true/>
            <key>NSTemporaryExceptionAllowsInsecureHTTPLoads</key>
            <true/>
            <key>NSTemporaryExceptionMinimumTLSVersion</key>
            <string>TLSv1.2</string>
            <key>NSTemporaryExceptionRequiresForwardSecrecy</key>
            <false/>
        </dict>
    </dict>
</dict>

Because we have exception domain ... is the iOS not gonna allow Non-ATS complaint URLs that are not in exception domain.

If I remove NsexceptionDomains .. then all the unsecured URLs are gonna be allowed to be used as allow arbitrary is set to yes.

If I keep NsexceptionDomains .. then the exception is gonna be applicable only for the domains mentioned ..

Someone clarify please