What does "Managed by Windows" do in the Power options for network connection?

According to this Microsoft Doc:

Managed by Windows - Only important apps that have been recently used are permitted to maintain access to the network. Apps designated as important are:
Any app that the user sets to Allow to run background tasks
All VOIP apps

While I can make sense of the first two options, what exactly is the effect of having this being managed by Windows?

It means only important recently used applications are allowed to maintain access to the network.

Source: Network Connection Settings