This policy setting sets the "Cut, copy, and sort inserted objects with their parent cells" option found under File tab | ...

This policy setting sets the "Cut, copy, and sort inserted objects with their parent cells" option found under File tab | Options | Advanced | Cut, copy, and paste Options.If you enable or do not configure this policy setting, Excel will cut, copy, and sort inserted objects with their parent cells.If you disable this policy setting, Excel will not cut and copy inserted objects with their parent cells.