Project settings are where you adjust how a project is wired up after it is created: the repository it tracks, the orgs it uses, and who can work in it.
What you can manage
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Source control repository
Manage the connected source control repository and its branches.
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Connected orgs
Manage the Salesforce orgs the project develops against and releases to.
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Member access
Control which members have access and what they can do.
When to revisit settings
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Update as the project changes
Update project settings when you add a new org, change how the team assigns work, or bring new members onto the project. Member access is covered under Workspace, Team & Billing.