Is pretty much the home button which closes the project you are on, however the name of the button does not clearly indicate that it takes you back to the home. If this is the intention of the button in the first place it should be renamed.
Currently it makes you think it probably closes studio, when it doesn’t. It would improve my studio experience by making it less misleading when needing to switch to another project.
Renaming it to home would imply it kept the current file open, whereas close file states that it will close the current file. Perhaps “Close Project” or “Close Game” would be better?