This is a simple distribution whos entire purpose is to handle the watchdog communications for multiple sites.
Imagine having a large multi-site setup that you manage such that there are possibly 50 sites in a multisite. You don't want to have to run dblog and/or syslog on all those sites. So, what you do instead is you have a site that manages watchdog for all those sites. The sites in the multi-site can then use hook_watchdog to write their watchdog messages back to this distribution and then you only have 1 site running dblog / syslog but its being populated by all the other sites.
-- Site 1
-- Site 2
-- Site 3
To error check as well you are only going to 1 location as a developer.
This is essentially a quick bundling of defaults for entity watchdog, restws, a few contrib modules and drupal core. This was developed for the CIS distribution so that each multi-site stack in the ELMS Learning network could be troubleshot / monitored independently and at scale.