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​I think that has been superseded by sc.exe (comand line) and Srvinstw.exe (GUI version) which means you don't have to hack the registry any more.

Correct, although this isn't actually relevant for XControls, as they do actually run even if the VI is not running. Another term for "reserved" would be "entering run mode" and it happens when the hierarchy the VI is in starts executing and the run arrow changes from white to something else which isn't broken or unsynced. Here's a table I did a while back and never got to use: It doesn't include all the states (like the green arrows), but it is fairly representative. The relevant states are the bottom three. This behavior can actually have consequences if you have weird code like setting val(sgnl) from another VI or if you register for an Application event like VI Activation and it's certainly relevant if your user manages to do something like double click on controls before the VI closes, as the events are saved in the queue even if the VI isn't running and will be processed the next time the VI is called and the event structure executes.