I am trying to get the distance from points to the closest edge of the nearest polygon. Does the Nearest Tool calculate distances to the polygon centroid or to the boundary?
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The Distance tool help documentation does a great job of explaining the different configuration options: https://help.alteryx.com/current/designer/distance-tool
I did a comparison between Distance and Nearest Tools. The Nearest Tool calculates distances the same as point-to-line and point-to-polygon in the Distance Tool when you have the Polygon or Lines as your Nearest Tool Universe (note that the Distance Tool was configured to return a distance of 0 when the point is inside the polygon). This answers my own question - Nearest Tool does calculate the distance to the nearest edge of the closest polygon.