This is where crash logs are stored. All types of crash logs are stored here when anything from an app to a daemon crashes. Logs can be viewed on an iOS device by going to Settings>General>About>Diagnostics & Usage>Diagnostics & Usage in iOS before 8.0. In iOS 8.0 to iOS 10, these can be found at Settings>Privacy>Diagnostics & Usage>Diagnostics & Usage. For iOS 11, they are located at Settings>Privacy>Analytics>Analytics Data.
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