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I was already aware of that parameter, cause I'm using it for applications that require drivers/services installation.
The security problem I see here is that virtualized browsers with this setting have an open backdoor for trojans, that could download an infected svchost.exe to exploit the system.
I don't know the reasons for a virtualized application to open new svchost.exe processes inside of the virtual environment when those services are already running in the host machine, which is my case.