Question Regarding Capacitive Sensor IC
What does the frequency setting serve as? What is its purpose? From
which section in the block diagram is this frequency generated from?

Capacitive sensors work by sending a waveform (in this case a sine wave) through a capacitor (might be air) and then sensing the change in voltage, and calculating a change in impedance. The frequency setting changes the frequency of the sine wave that the TX DAC outputs.

I couldn't find the &quot;Sensor driver output&quot; block on the block diagram?
What is the sensor driver output and what does it do?

The sensor driver output is the 10 pins SEN[0:9] (sen 0 through 9) and this is what the impedance of what the chip is trying to measure is attached to.

Source: https://www.mouser.in/datasheet/2/588/AMS_AS8579_Datasheet_V2_00-1853724.pdf