Please refer to article 75333: Macintosh Manager 1.3: Read Me for more information on the Security Bypass extension and its function with Macintosh Manager clients.
Please refer to article 90006: Macintosh Manager: Third-Party Application Allows Access to Restricted Area for more information on how Macintosh Manager handles security for Mac OS 7.6.1 through Mac OS 8.6 clients compared to Mac OS 9.x clients.
Mac OS 9 workstations "File Level Security"
Mac OS 9 includes a feature called "File Level Security," which prevents applications from writing to unauthorized locations on
accessible volumes. This feature is further described in article 75333: Macintosh Manager 1.3: Read Me. This functionality is reduced when the Security Bypass extension is installed on a client, bringing the security more in line with the level of security that Mac OS 7.6.1 through Mac OS 8.6 clients are offered in Macintosh Manager, as described in article 90006: Macintosh Manager: Third-Party Application Allows Access to Restricted Area.
Selecting the option to "Enable file level security on Mac OS 9 workstations" has the same effect as running a computer without the Security Bypass extension, resulting in the added security for applications that Mac OS 9.x offers. Deselecting this option is the same as installing the Security Bypass extension on your Mac OS 9 Macintosh Manager workstations except that it is a workgroup specific setting, not computer specific.
The Security Bypass extension may be used in conjunction with the "File Level Security" option of Macintosh Manager Admin. This allows Administrators to disable this added security per computer rather than per workgroup. If the Security Bypass extension is installed, the "Enable file level security" option is ignored on that workstation and file level security is always disabled.