fakeout | Kaggle Fake News Dataset Exploration | Dataset library

The documentation specifies:

The application data folder is automatically created when you attempt to create a file in it.

Use this folder to store any files that the user shouldn't directly interact with.

This folder is only accessible by your application and its contents are hidden from the user and from other Drive apps.

So while there is no direct information about Google sheets not being allowed in the application data folder, one can assume that a Google Sheets file does not meet the mentioned criteria.

As for scopes:

• You can use the scope https://www.googleapis.com/auth/drive.file.
• This is a narrow scope that gives the application only access to files that have been created by this application, see here
• By using this scope, you avoid asking for access to all users files, and thus the users do not need to worry about providing this scopes to the application.