This policy setting allows you to specify the default compatibility mode when creating new files in Word. There are three ...

This policy setting allows you to specify the default compatibility mode when creating new files in Word. There are three modes:

1. Word 2003: This mode disables features in Word that are not compatible with Word 2003.
2. Word 2007: This mode disables features in Word that are not compatible with Word 2007.
3. Full functionality mode: This mode ensures that all new features remain enabled. This is the default setting for Word. 

Note: Not all file formats support all three Compatibility Modes. Open XML file formats such as .docx and .dotx, support all three modes.