TLDR: Windows 95 OSR2 (OEM Service Release 2), introduced in 1996, was an enhanced version of the original Windows 95 operating system. It included significant updates such as support for the FAT32 file system, which allowed for larger partition sizes and improved storage efficiency. Distributed exclusively to OEMs, it also featured updates like improved USB support and built-in Internet Explorer 3.0, marking a step forward in Microsoft's push towards internet integration.
https://en.wikipedia.org/wiki/Windows_95
Windows 95 OSR2 brought better hardware compatibility and performance enhancements over its predecessor. The inclusion of the FAT32 file system enabled partitions larger than 2 GB, a limitation of the previous FAT16. Additionally, it introduced Advanced Power Management (APM) enhancements and better Plug and Play support, improving the usability and stability of hardware integration. These upgrades made Windows 95 OSR2 a practical choice for both personal and business users.
https://docs.microsoft.com/en-us/windows/release-health
Another significant feature of Windows 95 OSR2 was its partial support for USB, paving the way for broader adoption of USB peripherals. Although the USB implementation was rudimentary compared to modern standards, it represented an important step in standardizing device connectivity. The operating system also laid the groundwork for seamless web browsing by bundling Internet Explorer 3.0, reflecting Microsoft's strategy to integrate web access into its core offerings.