SQL Server 2022 compatibility level 160

Brass Contributor

I have SQL Server 2022 on a Windows Server 2019 server and I can create databases up to compatibility mode 150 (SQL Server 2019), and in a Windows Server 2022 with SQL Server 2022 it allows me to create databases with compatibility mode 160 (SQL Server 2022).
Is that right?
Is there any reason to allow to create databases with comp mode 160 only in Windows server 2022?

Thanks,

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