Hi Renee,
I did some testing in my own development course and I have concluded that it doesn't use Canvas file storage. The Scorm tool is an LTI tool added by Canvas just like Quizzes and Chat etc.
A SCORM package is a Shareable Content Object Reference Model and is designed to be effectively shared across various LMS. The package can contain a course or media content. The SCORM package has a completion score associated with it. The score is updated dynamically during viewing (if you enable this before exporting as a zipped file). We use Camtasia to create Scorm content, something that is available if faculty are using it already (they need to have a license for it). Anyway if you're not familiar what what Scorm is...
A Scorm package is a zipped file that is uploaded via the Scorm tool. The Scorm tool unzips the content in the zipped folder automatically. You are prompted to to add it as a Ungraded or Graded assignment. Open the Assignment, edit the Assignment as normal and publish. The Scorm content is now an assignment and can be played back through the Scorm player.
Note: It doesn't use Canvas Files storage from what I can tell from my testing. SCORM is hidden by default. To add the tool to your course navigation menu, move it from the section of hidden tools to the main section; see Instructure's guide How do I reorder and hide Course Navigation links? If it isn't turned on at an institution level then your Canvas admin would need to enable it.
Here are some great articles posted by the University of Minnesota https://it.umn.edu/services-technologies/how-tos/training-hub-prepare-scorm-use-canvas and Indiana University About the SCORM tool in Canvas
If an instructor only want students to view the media provided from the Scorm package they can do this through a Module. See this article from the University of Melbourne SCORM in Canvas
***If anyone else has recommendations or further feedback than what I have provided in this response please feel free to add to this.***
I hope the information is helpful.
Katie
