Hello Bhatt,
Thank you for posting in Q&A forum.
Elevating the domain/forest functional level to the Server 2019 functional level means that the new features and improvements introduced in this release will be enabled in the domain environment. While this will not directly affect Basic Authentication and Group Policy application on Windows XP computers, some new features (such as Kerberos protocol enhancements, Group Policy preferences, etc.) may not be transparent to XP because XP does not support these advanced features.
Although the DC's operating system version is upgraded to 2022, as long as the domain functional level remains at Server 2019, XP clients should theoretically continue to interact with the new DC for basic authentication and directory services.
Windows XP is an outdated operating system and no longer receives security updates since it ended support in 2014. Therefore, there are no patches or tests for XP scenarios either. So, in your environment, while it might work today, there's really no guarantee tomorrow.
In view of this, it is strongly recommended that you migrate to a supported operating system version, such as Windows 10 or Windows 11, as soon as possible to ensure system security and compatibility, and to enjoy the latest feature updates and technical support.
I hope the information above is helpful.
Best Regards,
Yanhong Liu
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