What do you actually not understand? Your settings seem to be correct.
The output profile is the profile you embed in the JPEG you create to ensure other viewers interpret the image the same way (if they are properly color managed).
Your monitor profile is the same in your Preferences and in the bar at the bottom of the editor. This ensures your preview is correctly rendered according to your monitor calibration.
I asked because I wasn’t sure about it. and I couldn’t find some place that explained the various uses of the profiles. Plenty on what are the colour profiles but not on how to use them.