The little scope is for polar aligning like you thought, down here you point to octans constellation, does t have marks for it in the little scope (your goto will be better if polar aligned)
Setting circles are to help you find objects using hours deg etc. you align them on a known object, hen move them to the known time, eg locate Jupiter (which you look up & see it Is 15h25deg, you then move the set circles to match this...then use the o help locate other objects
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