Can Someone please let me know what is the SDS provider in ArcGIS Enterprise and when this type of service is created?
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The provider of Hosted FeatureServer is SDS.
I addressed this in a comment to your question on GIS SE, but will post it here as well:
ArcGIS Spatial Data Server (SDS) was a single-release product at 10.1, Esri deprecated it by ArcGIS 10.2 when ArcGIS Server's feature access capability was expanded to support non-geodatabase databases. I can't imagine you are seeing that in the wild these days.
Thanks Joshua, this is weird because we Started ArcGIS Enterprise from 10.6! and I am seeing more than 100 services in SDS provider format!
Accoring to Lerman, it appears Esri may have repurposed that provider for Hosted FeatureServer.
The provider of Hosted FeatureServer is SDS.