This policy setting determines whether Windows traces shortcuts back to their sources when it cannot find the target on the user's system.
Shortcut files typically include an absolute path to the original target file as well as the relative path to the current target file. When the system cannot find the file in the current target path, then, by default, it searches for the target in the original path. If the shortcut has been copied to a different computer, the original path might lead to a network computer, including external resources, such as an Internet server.
If you enable this policy setting, Windows only searches the current target path. It does not search for the original path even when it cannot find the target file in the current target path.
If you disable or do not configure this policy setting, Windows searches for the original path when it cannot find the target file in the current target path.