The General settings for compound documents site preferences determines the default link type for adding a child document. When a user adds a child document, the Link To field initially displays the default value set by the Default Link To Type preference. The link type determines which version of the child document is linked to the parent document.
You can set the Default Link To Type to default to a specific version (Version), the released version (Released), or the current version of the child document to the parent document. The default selection is Released.