Yes, the whole idea behind the "Needs_Profiles_Created" category was when you added info to a pre-existing profile as a source like a census that had further connections to other people. Rather than falling down a rabbit hole and getting diverted from your original task, you could put up a signpost "Here there be Dragons" and come back later. It was also intended to help connectors and could get people familiar with sourcing and creating profiles for a learning experience. It seems to have taken off I guess.
Unconnected profiles on the other hand are not part of the Main Tree and that means you are very unlikely to be able to find a relationship with that profile. Those need to be linked to the tree by finding a bridge profile. Some are new profiles and some will be merges.
Any profile that hooks to an existing profile counts toward the challenge.