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The squad fill is an option if you want people to be in your team or not (empty space required).

For example, you are about to do squad with no one in your main server but you turn squad fill on, there is a possibility that other people will be in your team.

However, if you are about to do squad with no one in your main server but you turn squad fill off, no other player will play with you/accompany you, means that you are doing solo squad.