This file is entirely capstone specific. (It would not exist in a project outside the context of this course.) If your project is not suited to the standard template for folder structure and naming, you should discuss this with the course instructor. Assuming an exception is granted, you should record the details of the exception in this file. This will allow the TAs and course instructor to quickly review the exceptions, especially in advance of grading.
One exception that comes up is teams that have more than one repository. The rationale needs to be explained to the instructor and permission needs to be granted. Once granted, this file (ExceptionsGranted.md) should be used to explain the specifics of the exception. In particular, what are the repos, where are they, and what are their contents.