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The number of versions to keep is controlled in your project file. The folder cannot be removed totally. IV will always recreate the folder, even if it's not used.
When you save, the old version(s) get placed in
this folder, in case you need to step back to an earlier iteration of the
part. This is opposed to the old method wherein the old version(s)
were saved internal to the part file, giving you the same capability but making
the files larger.
![Autodesk Design & Make Report](https://forums.autodesk.com/t5/image/serverpage/image-id/1350519iCB55845EBFC43016/image-size/large?v=v2&px=999" "Autodesk Design & Make Report")