Complex sentence: This extension remains hidden in Windows Explorer even when "Hide extensions for known file types" is unchecked in "File Type" options because it is controlled by the "NeverShowExt" option in HKEY_CLASSES_ROOT → LNK file in the Registry.
Split into simpler sentences: This extension remains hidden in Windows Explorer even when "Hide extensions for known file types" is unchecked. That's controlled by the "NeverShowExt" option in HKEY_CLASSES_ROOT → lnkfile in the Registry.