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Let in bracing was used on older homes to Brace the walls From racking when using a sheathing that was unable to perform the Function.
Typically 1x4 or 1x6 Sheathing when installed hiorizontally or vertically. Other products - such a gypsum board product used in the early 50's could not provide any shear value. Todays plywoods perform that function quite well & therefore let in bracing is not necessary .
I use let in bracing on interior walls ocasionally say on a wall perpendicular to a gable wall that is tall enough that the bottom chord of the trusses or ceiling framing can't be braced enough to stop the wall from being a diaphram, and there are no other walls perpendicular to the gable wall.
We used let in bracing from the late 70's when I started (others obviously used it before) up into the early 90's. What changed was that almost every house now requires OSB shear over the entire exterior before tyvek and siding so it doesn't seem worth the effort.
I was told that california has a code where a let-in braces (The L-metal type) are required on any (interior?) wall greater than 10' w/o an opening... it seems that 99% of the time, such walls are already shear walls...