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.