Replication read-only policy confusion

I’m attempting to replicate a dataset and am somewhat confused by the “Destination Dataset Read-only Policy” option in the Replication Task wizard.

When I replicate to the remote system where the destination dataset does not exist, and the Read-only Policy set to Require, the replication fails with an error that the destination dataset is not read only. Which is sort of true, the remote dataset doesn’t exist yet. I’d prefer for it to be created and then set to read only.

It seems like “Set” is the proper option here, as it would replicate the data and then set the destination dataset to be read-only.

So, I’m kind of curious. What purpose does the “Require” setting serve? Presumably if I already had an existing dataset at the remote location and it was already set to read-only, then “Require” would work. But the replication task fails if the remote dataset already exists and contains snapshots. Is the proper way to do this to create the remote dataset manually, with no snapshots, set it to read-only, then use the “Require” setting?