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I honestly don't know why we used the lozenge there, there may have been other abilities intended that never came to be or something I'm not even actually aware of. I can tell you what it is though. If you're using the pro version, will find these lozenges in the header and footers interface of page setup. You can add them for multiple things like page number, print time, document title, section title, etc. In the header and footer fields they are dynamic, but only so in the header and footers field. You can copy them and paste them into your document but they won't update. When a new document is made, that lozenge is put in as the outline title, possibly because it was an existing way to have that update to the file name if you don't provide any other title for your outline.

You can view this whenever you want by showing the outline title, View -> Show Outline Title -> Always

If you customize the outline title, that is what will be used by the outline title lozenge in the header and footers.