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This is used by .Net Framework Tools and .Net SDK Tools (and other .NET actions) as the default .NET version for the tool they relate to.  The .NET version can be changed on an action by action bases for these tools. Note that all

Note
All .NET versions are supported for tool actions. 

In addition the option specifies the CLR version that is loaded.  This is used by Custom User Actions and some included actions written in C#. Currently a minimum version of .NET 4.0 is required due to the features being used in the running of certain actions. 

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