When it comes to creating an Addon, both ways are perfectly fine. We recommend starting out with the first way - from within the Query all Records function in the Function Stack. This is because it will give you the clearest picture of how you are using the Addon to extend your data in an API endpoint or Function. You will be taken through a series of steps covered in the following subpages to choose exactly how you want the data returned in your Addon.
Once you create your Addon with this framework, it will be saved to the Addons page of the Library. There, you can click on your Addon to see the workflow of an Addon. Once in the workflow view of your Addon, you are able to do further customization of your Addon that you might not be able to do through the Query all Records function flow.