The FCC requires the applicant to check either “Yes” or “No” next to the question “Has the Applicant or any party to this application, or any party directly or indirectly controlling the Applicant, ever been convicted of a
felony by any state or federal court?”
The FCC wants to ensure each new licensee and licensees who upgrade
have the necessary character to be a licensee in accordance with the
Communications Act of 1934, as amended. It is also required on form 601 that are used by other services applying to the FCC.
You can read more about it here.
Please note that this is an FCC requirement and not a VEC or VE Team requirement.