Why your image has a white box behind it
A file can only be transparent if the format has somewhere to record it. That place is the alpha channel, a fourth number stored alongside red, green and blue that says how opaque each pixel is.
PNG, SVG and WebP have one. JPG does not and never will. So anything saved as JPG has no transparency to recover, whether it is a product shot, a screenshot or a logo. The white around the subject is simply part of the picture, indistinguishable from a white box someone painted in deliberately.
That is what this tool is working around. It cannot read transparency that was never stored, so it reconstructs it by removing the background color. On a clean, even background the result is usually indistinguishable from the real thing, which covers most product photography shot on white, most screenshots and most logos.