Out of the box artefacts that read this property. Append the path to your instance URL to open the record and see how the value is used.
Script include: NowAssistAdminPluginUtil
The code checks whether the regulated-instance setting is true; if it is missing, it defaults to false. No changes to users or admins are shown in this code.
/sys_script_include.do?sys_id=a4cea1ed43030210a19890cfd7b8f207
Script include: ServicenowStudioConfig
Studio configuration checks this property to identify a regulated instance; setting it to true applies restrictions to features such as Build Agent. If the property is unset, it defaults to false.
/sys_script_include.do?sys_id=be474abeffc2fe50ae6cffffffffffaa
Fix Script: Modify CSP headers for GCCH and DOD env
When this setting is true, the site allows its own pages and *.teams.microsoft.us to embed it in frames; otherwise, the header is unchanged. If the setting is unset, it defaults to false.
/sys_script_fix.do?sys_id=c77c43e243022110194ee883a9b8f25b
Check: Enforce Device Encryption and Passcode Requirements
The check reads this setting as the fallback for the device-encryption setting: regulated instances default to encryption enabled, while others default to disabled. This affects whether admins receive a finding; the fallback is false if no default is supplied for this setting.
/scan_check.do?sys_id=2f321930774031101b803a91fa5a9998