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Auto State provides a set of settings to control the usage. These are the current settings:

Use scoped work item types

Only use work item types defined in this projects process

This controls what work item types shows in the dropdowns while configuring rules. It only controls the UI and not any functionality.

OnWhen this setting is on, only the work item types defined in the current process will be showed.
OffWhen this setting is off, all the work item types will show.