In Query from the Dynamic, you can retrieve the results from the current post type.
In this Query type, you don't have the option to select the post type as it is dynamically fetched from the current page.
For example, if you use this widget on a Page and choose Dynamic Query Type, it will show the results from Pages post type.
On the other hand, for example, if used on a single post template for the post type "post", it will show results for the "post" post type. And, you will not need to choose the post type manually.