This policy setting tunes the limit for the number of failed proxy connection attempts to a Groove Relay server by the SharePoint ...

This policy setting tunes the limit for the number of failed proxy connection attempts to a Groove Relay server by the SharePoint Workspace client.  When the limit is reached, further proxy connection attempts to the Groove Relay server are abandoned.

If you enable this policy setting, the SharePoint Workspace client will be limited to the set number of proxy connection to Relay failures.

If you disable or do not configure this policy setting, the SharePoint Workspace client is limited to one proxy to Relay connection failure.