META: What does selecting XCode as default script editor in Script Editor prefs actually do?

I changed the Default Script Editor to XCode but nothing happened. If I manually open scripts in XCode they aren’t read as compiled scripts but as text files (?). What does this setting do?

But can XCode read AS-files?

This is how it looks for me in XCode:

What do you use as editor or IDE for AppleScript? Script Editor is starting to becoming to basic for me when the scripts starts be hundreds if not thousands of lines with dozens of methods and functions. I would like a real IDE.