The correct answer is Cloud Discovery can automatically add previously unknown applications to its catalog.

Cloud Discovery can automatically add previously unknown applications to its catalog is not accurate because most cloud discovery systems flag unknown or uncatalogued applications for administrator review rather than adding them automatically to the official catalog. Cloud Discovery will typically surface unknown apps with metadata and allow an admin to validate or classify them before they become part of the managed catalog.

Logs undergo a sequence of steps that include upload, parsing, analysis, and report creation is not the right choice because that description matches how Cloud Discovery workflows operate. The service ingests logs or collects traffic, parses events, analyzes them to identify applications and usage, and then produces reports for review.

Continuous reporting can be enabled by linking the service to an endpoint protection solution is not the right choice because integrating with endpoint telemetry or agents is a common way to enable ongoing discovery and near real time reporting rather than relying solely on periodic log uploads.

Cloud Discovery evaluates network traffic logs against a repository of more than 38,000 cloud applications is not the right choice because Cloud Discovery uses a large application catalog to map traffic to known cloud services and many vendors maintain catalogs that contain tens of thousands of applications to improve identification accuracy.

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