Hello,
In a DAW it's normal to set up twice. One as a keyboard controller, and one as a control surface to control the DAW including the transport bar. That's why you have two choices. The DAW option is for the Control Surface.
DAW's have different settings to set up things.
Keylab MK2 have different maps/ Presets to control different DAWs. As far as i know it in example also have Midi Machine Control (MMC) map/ preset and also standard Mackie maps/ presets. You shall select the map/ preset that work. Please consult you Keylab MK2 manual about this.
I have no idea how MPC works and which messages of the above it needs.
If MPC's transport bar only work with midi CC, then you can't use Keylabs transport bar buttons i think, but you can use other buttons.