Apparantly, the seed.db is required for part of the decryption function that allows games built for firmware 9.6+ to run (unless it is cryptofixed). It is downloaded whenever you visit the eshop page for that title. At least this is how I understand it. I had to do this when I installed a Pokemon Blue VC CIA from that iso site. It locked my console up at first but once I visited the eShop page for the game, I was able to play. That is how I understood it anyway... someone correct me if I'm wrong. This thread has a little bit of information.
https://gbatemp.net/threads/what-is-a-cryptofix.391151/