Will Macros package be embed into App?

For example, when I use #stringify Swift Macros to generates code in my App, it replaces some of my source code with new one during compile time. So will this Macros Package be shipped with my App? or it just happens during compile time

The replacement happens at compile time. A macro target shouldn't be linked into code that applies macros contained in that target.

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If it happens during compile time, is it possible to use Macros in projects targeting iOS 11? All code it generates are iOS 11 compatible

That should work as long as you stick to using compatible SDK calls. The macros are a tooling change and thus don’t go beyond your development Mac.