Windows Server 2012 R2 SYSVOL folder replication

Hi All, 

Recently I've come across to something I have never seen before. To be more precise on two Windows Server 2012 R2 domain controllers I found C:\Windows\SYSVOL\domain folder replicating between them by means of DFS Replication. 

1) Should replication between domain controllers be performed by means of DFSR?

2) What if replication is disabled like on the screenshot? 

Thank you.