windows – Folder Redirection: What is the configuration for "Also apply redirection policy …"?

When implementing Folder Redirection through Group Policy, there is a check box on the Settings tab that says "Also apply the redirect policy to the Windows 2000, Windows 2000 Server, Windows XP and Windows Server 2003 operating systems."

When I look up this checkbox on Google, all I find are procedural articles about folder redirection in general, support articles that say something bad or something is happening because it is or is not checked, or forums full of tips of people clearly have no idea what they are doing

I know how folder redirection works. I also know how to read. What I want to know is, what does this configuration mean? at present From a technical point of view?

Folder redirection - Document properties

We do not have any XP or Server 2003 machines in our environment, so this checkbox is irrelevant to me. But today I found a fraudulent group policy that is ruining permissions on a file server, and it's because I had the "Grant the user exclusive rights …"check box enabled, I need to disable it, but that policy also has this option set, and I want to know how / if this will affect the terminal server it is being applied to.