Well, that is certainly the point. DOS 7.0 (the one used in Windows) is a really dumbed down version of the "real" DOS. There is not even a third of all the commands you would find in the "real" DOS, and thus it is incomplete.
I've found plenty of games which simply refused to run in the WIN DOS of my version of '98 SE without heavy changes to the config.sys and the autoexec.bat. Changes which were common place in a normal installation of the "real" DOS.
WIN DOS also introduced the "improvement" on the extended DOS name files, such as testfi~1.exe... Which is not much of an improvement in itself as long as DOS is concerned. It was simply a way Microsoft devised to go around the problem without taking time to actually fix it...
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