Each of the choices in that option reflect what the situation is, not necessarily what you want it to be. If the uncompressed files are in js/xenforo/full/, you want to select that option (the second one).
Each of the choices in that option reflect what the situation is, not necessarily what you want it to be. If the uncompressed files are in js/xenforo/full/, you want to select that option (the second one).
You can move the files around if you wish, though you'll need to do this each time you upgrade. Bear in mind that our development version is somewhat different than the downloadable packages.