MP4 is the world's default video: the file that plays before anyone has to think about it. It was born in 2001, the MPEG standards group, built on Apple's QuickTime design, and its real weak spot is very little day to day: as a container its quality depends on the codec inside.
AVI is the veteran of desktop video: dependable in 1995, cranky about everything invented since. Audio Video Interleave: an early container that predates streaming and most codecs you'd use today. That makes it the right destination when what you need is opening old archives and humoring legacy Windows tools.