Look at options/user preferences upper right corner.
Every time when you give input for coordinates..
No matter how.
Mouse direction and length
,30
Mouseclick
Every click or input for a pickpoint will be as result a coordinate information for acad.
In some situation acad is asking for a object, you can click them or select it by 200,400 - in first line both are coordinate information for acad,
At the same time acad calculate the coordinate point by the current osnap one or more are active.
Coordinates 1 is default.
Whenever you using the keyboard for input, acad ignore the running osnap(osmode).
Thats good, because you never want a osnap point when you working with the keyboard, or you will use the temporary snap explicit.
Ps: osnapcoord set to 0 can be a really bad thing(users who playing in options and change this setting to 0)
Unexpected results welcome.
But osnapcoord(1) is only for ignoring running osnaps by keyboard input from users,
it is not for automation inputs like macro script (commands or sendcommand from other APIs)
When you needed osnaps without input by user? Not so often..
Osnapcoords 2 includes coordinate inputs from automations (control commands with lisp,scr,macros and so on)
Value 2 should be the default, but it isn't from adesk.
1 or 2, for normal user work it is the same.
But you knowing about millions of lisp snippeds and dirty macro/scripts/lisps and blind using users.
Value 2 should be default and protects users for some gray hairs, but it isn't by adesk.