The changes are part of CMP0128.

When the standard level is unset:
* Flags are added if extension mode doesn't match the compiler's default.
  Previously logic only worked if LANG_EXTENSIONS was ON. Fixes #22224.
* The full flag is used. Previously CMAKE_LANG_EXTENSION_COMPILE_OPTION was
  used. This was only supported for IAR.

Otherwise:
* Avoid adding flags if not necessary per the detected compiler defaults.
* Fixed check for when the requested standard is older. It now matches the
  nearby comments.

I reworded the fallback comment as its logic was a bit difficult to wrap my
head around.