The Clone Vault plugin allows users to create a duplicate of their existing Obsidian vault while preserving its settings and folder structure. It copies the `.obsidian` settings folder and enables selective duplication of specific folders, such as templates, without copying all content. Users can configure the default location for new vaults and name them through a convenient modal prompt. This plugin is useful for setting up new vaults with pre-configured settings and structures, ensuring consistency across different workspaces.