The Start Menu and Taskbar display Jump Lists off of programs. These menus include files, folders, websites and other relevant items for that program. This helps users more easily reopen their most important documents and other tasks.
If you disable or do not configure this setting, all files that the user opens will appear in the menus, including files located remotely on another computer.
If you enable this setting, the Start Menu and Taskbar will only track the files that the user opens locally on this computer. Files that the user opens over the network from remote computers will not be tracked or shown in the Jump Lists. Use this setting to reduce network traffic, particularly over slow network connections.
Note: This setting does not prevent Windows from displaying remote files that the user has explicitly pinned to the Jump Lists. See the "Do not allow pinning items in Jump Lists" setting.