I see the term "SolidWorks Database" mentioned in ISketchManager. What does that mean? It's never explained in any detail that I could find. There's plenty of offline databases SolidWorks uses, like the Toolbox. But the property "ISketchManager::AddToDB" hints to me that they may be talking about the internal representation (data model) of the part/assembly. Perhaps points, edges, curves, etc are stored in some kind of internal SQL database? Is that what they're talking about? If so, is there a way to access it? SQLite?
All that setting means is that SW will bypass any entity snapping or automatic relations and add the sketch geometry directly to its internal storage. There is no documentation regarding that storage method. You cannot access it through any type of SQL.