Does the selection of 'Clear the table and Insert rows' in the ODBC stage send a Truncate statement to the DB or does it do some kind of Delete logic. 

There is no TRUNCATE on ODBC stages. It is Clear table blah blah and that is a delete from statement. On an OCI stage such as Oracle, you do have both Clear and Truncate options. They are radically different in permissions (Truncate requires you to have alter table permissions where Delete doesn't).  
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