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In this video tutorial, the presenter explains how to identify and change the compatibility mode of documents in MS Word 2016. They begin by clarifying what compatibility mode is and demonstrate how to check which version of a file is being used. The process involves opening the document, going to the "File" menu, selecting "Check for Issues," and then "Check for Compatibility." A dialog box appears that allows you to view the version of the file, which in this case is identified as an Office 2003 document. The tutorial aims to guide users on how to upgrade this old file to work with the latest version of Microsoft Word.