This policy setting specifies the Work Folders server for affected users, as well as whether or not users are allowed to ...

This policy setting specifies the Work Folders server for affected users, as well as whether or not users are allowed to change settings when setting up Work Folders on a domain-joined computer.

If you enable this policy setting, affected users user receive Work Folders settings when they sign in to a domain-joined PC. 

The "Work Folders URL" can specify either the URL used by the organization for Work Folders discovery, or the specific URL of the file server that stores the affected users' data.

The "Force automatic setup" option specifies that Work Folders should be set up automatically without prompting users. This prevents users from choosing not to use Work Folders on the computer; it also prevents them from manually specifying the local folder in which Work Folders stores files. By default, Work Folders is stored in the "%USERPROFILE%\Work Folders" folder. If this option is not specified, users must use the Work Folders Control Panel item on their computers to set up Work Folders.
   
If this policy setting is disabled or not configured, no Work Folders settings are specified for the affected users, though users can manually set up Work Folders by using the Work Folders Control Panel item.