>>So basically this means that in order to use new features that Windows LAPS provides (like password history, encryption etc) one must upgrade
>>to new Windows LAPS either through Co-existence (side x side by targeting different admin accounts) or immediately transition to Windows LAPS. Please confirm.
Yes that is correct.
Emulation mode was always intended for use mainly in a temporary phase before a customer migrated over to the full Windows LAPS. However we knew there is a huge install base for legacy LAPS out there, and it was not clear how fast customers would migrate. Before we shipped (this past April), I was guessing it would be a multi-year process at least - and emulation mode seemed like it would be a useful tool for some customers.
But then we shipped - and the uptake rate on moving to the full Windows LAPS feature set has been so rapid that to be honest, I probably didn't need to invest in emulation mode at all. Go figure, live and learn, etc. 🙂
Jay