Hi @AlexJohnson84. I will post a link to the 2024 online help documentation about that setting in the Document Settings dialog below.
Modeling Tab Reference (Document Settings)
It says:
"Available only when the active part is adaptive. Removes the indicator that a part is used adaptively in an assembly. Clear the check box to remove the adaptive indicator.
Note: Change the adaptivity status only if the assembly no longer uses the part. If you remove the indicator from a part that is still used adaptively in an assembly, the part becomes a rigid body."
I pretty much never manually set any of my parts or assemblies to 'adaptive' where I work, so I am honestly not super familiar with how that may work out for you. Normally the only scenarios where I have things being adaptive is when I have created sketches &/or features at a parent assembly level, while in-place editing a component within an assembly, using either projected sketch geometry from other components in the assembly, or by basing some geometry associations on stuff only found at assembly level. Then the part will automatically contain associative sketches/features where they are driven by something in a specific assembly. I generally do not leave them associative though, opting to break the link, then fully constrain them based on local geometry within my part, after the fact. Mainly to prevent unwanted changes, once their design has been 'documented / detailed' in a drawing, either for production or for supplier fabrication. And for performance reasons, to avoid the additional references/links getting checked when those files are loaded.
Wesley Crihfield

(Not an Autodesk Employee)