OldVersionEditDialog behavior

I don't understand the behavior or purpose of OldVersionEditDialog. It says:

Edit older version?
You are viewing an older version of this document. Editing it will create a new branch in the document history, separate from the latest version.

So I guess this means that newer changes will be deleted/lost?? This seems very confusing!

I don't understand why the user would want to do this, and I think the message is not very clear what the behavior will be.

Wouldn't it be easier to force the user to create a branch if they try to edit an older version?

I can't tell the behavior of "Edit anyway" because it doesn't do anything. Will I loose all the other versions of the document if I edit anyway?

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