Update - when to panic?

I am at step (2) but now it is asking me about config files, and I do not want to make the wrong choice and break my setup.

Any suggestions for what to do when it asks:

Configuration file X
 ==> Modified (by you or by a script) since installation.
 ==> Package distributor has shipped an updated version.
   What would you like to do about it ?  Your options are:
    Y or I  : install the package maintainer's version
    N or O  : keep your currently-installed version
      D     : show the differences between the versions
      Z     : start a shell to examine the situation
 The default action is to keep your current version.

Note that I ran sudo DEBIAN_FRONTEND=noninteractive apt-get dist-upgrade and did not expect to be asked about config files.

Edited to add: I see I already asked about the “noninteractive” option here: Unattended-upgrades vs. DEBIAN_FRONTEND=noninteractive apt-get upgrade vs. apt-get upgrade -y