The macOS sleep mode lets your computer mostly rest its burden, reducing energy consumption during those periods. For laptops, it’s particularly useful in conserving battery life. For an AC-powered desktop Mac, however, sleep these days has a very modest reduction in wattage, and you may want your Mac to stay alert to perform actions or respond to remote queries, like a remote screen-sharing session.
Ventura made these settings harder to understand, so much so that I didn’t realize until testing a remote-access app that my Mac was going to sleep, as the Monterey settings didn’t produce the same result.
Read more at Macworld.com