First, you must understand How MDT uses LocationServer.xml. During LTI, MDT scripts read and process the BootStrap.ini file to gather initial information about the deployment. This happens before a connection has been made to the deployment server. Therefore, the DeployRoot property is commonly used to specify in the BootStrap.ini file the deployment server to which it should make a connection.
If the BootStrap.ini file does not contain a DeployRoot property, MDT scripts load a wizard page to prompt the user for a path to the deployment server. While initializing the HTML Application (HTA) wizard page, MDT scripts check for the existence of the LocationServer.xml file and, if it exists, use LocationServer.xml to display available deployment servers.
Related Topics
Selecting a Local MDT Server
When Multiple Servers Exist
Understand When to Use
LocationServer.xml