What encapsulation does the 'Extension' model promote in Dynamics 365 development?

The 'Extension' model in Dynamics 365 development emphasizes the encapsulation of custom business logic and UI elements. This approach allows developers to extend existing functionalities without modifying the core application components, which preserves the integrity and upgradability of the system. By encapsulating custom business logic, developers can implement specific processes and rules tailored to their business needs while ensuring that they remain separate from the standard application logic. This modular design enhances maintainability and allows for easy updates and modifications in the future, making it highly effective for adapting to changing business requirements.

Moreover, this model encourages the implementation of custom UI elements that are specifically designed to be integrated seamlessly within the application interface. This separation between the core system and customizations is fundamental to the Dynamics 365 architecture, facilitating a clear structure for developments and ensuring a clean upgrade path.

Other choices focus on aspects that do not align with the primary goal of the 'Extension' model, such as data storage methods, user security policies, or database queries. While those areas are important in a broader development context, they do not encapsulate the core objectives of the extension model related to business logic and user interface customization.