System proxy
v2rayN sets itself as the Windows "system proxy server". Browsers and most well-behaved apps go through it, but many games, command-line tools and some clients ignore it and connect directly.
TUN mode (virtual adapter)
TUN creates a virtual network adapter and captures the entire computer's traffic, including apps that don't honor proxy settings. It's more thorough but needs administrator rights and a one-time install of wintun.dll (v2rayN prompts for it).
How to choose
- Everyday browsing → the system proxy is enough and stays out of the way.
- Games, Telegram, command line, Docker, etc. → use TUN.
- When TUN is on, turn the system proxy off — stacking both easily causes a loop.