As far as Bullet Physics itself goes... strictly speaking it can be implemented as either Imperial or Metric.
It's actually fairly standard to use Imperial, as most Game Engines (ID Tech, Frostbite, Unreal) typically utilise Imperial., as this is their Default Scale Factor.
That is to say, you work with the Unit Systems you're used to... then leave the issue of conversion between to the Engine (Physics) Programmers to deal with.
Now., personally I've not used the Physics in AppGameKit rather I was going off of what you posted from the Help; and the way it was worded seemed to suggest it was using Imperial Measurements as the Default Scale.
From what others have suggested., this actually isn't the case and instead what the Help is more likely referring to is the fact that people are more familiar with creating Models for Unreal, Source, Quake, etc. where you do not only set Z as the Up Axis but also Default to Inches (with 72 Units / Inches = 6ft; or the Standard Height of a Character).
As I understand it, this isn't the case for AGK.
Instead it's Default Units are (just like DBP) 1.0 Unit = 1.0 Centimetre., and when you also take into account it also uses Y as the Up Axis... this means that Applications such-as Maya already utilise the Default Scale and Orientation.
Where-as Applications such-as Max (Inches Default, Z Up) and Blender (Meters Default, Z Up) aren't actually going to output correctly.
What does this have to do with the "ScaleFactor" … well basically again, as I understand it; this is essentially how many of your Model Units = 1 Meter.
So for example... if I were to export from Maya., which uses Centimetres (by default) then I'm going to want to set this to 100.
As well 100 CM = 1 METRE
But of course if your Modelling Application uses a different Scale., then you're going to want to manually set this; assuming you haven't accounted for this when you export (to FBX or such).
Now will this make a difference in terms of the Physics Calculations?
Strictly speaking no... but look at it like this., let's say your Model is already in Metre and it's using the Default Scale Factor of 100; well now instead of being say 1.8M Tall., your Character is now 180M Tall. That will make a difference in regards to how Physics will behave with it., because if it's falling at 9.81M/s (which btw, you DO NOT want to use this for Game Physics and instead you typically want to use Half to a Third of that for "Natural" Physics that Players can react to) then at 1.8M it takes ~183ms to Travel from Head Height to the Ground (again this is why you want Gravity to actually be Lower) where-as if it's 180M then it would take 18.35s; which is … well that's insanely slow.
As I said you want to use between 50 - 33% the Intended Gravity to allow for Input Latency and Player Perception.
Game Theory often covers how Game Gravity is different from Real Gravity., but I'm not sure if they've ever really dived into WHY we tend to use Lower Gravity.
If it's a Racing Game, you tend to be "Fine" with Real Gravity for Realism Purposes; but everything else., you want it to be Lower.
There's a lot more elements than just Scale involved still., this should be a good enough explanation for now.