[cmd] How do SETLOCAL and ENABLEDELAYEDEXPANSION work?

I notice in most scripts, the two are usually in the same line as so:

SETLOCAL ENABLEDELAYEDEXPANSION

Are the two in fact separate commands and can be written on separate lines?

Will setting ENABLEDELAYEDEXPANSION have an adverse effect on a script if it is set on the first lines of the script and not disabled until the end of the script?

I think you should understand what delayed expansion is. The existing answers don't explain it (sufficiently) IMHO.

Typing SET /? explains the thing reasonably well:

Delayed environment variable expansion is useful for getting around the limitations of the current expansion which happens when a line of text is read, not when it is executed. The following example demonstrates the problem with immediate variable expansion:

set VAR=before
if "%VAR%" == "before" (
    set VAR=after
    if "%VAR%" == "after" @echo If you see this, it worked
)

would never display the message, since the %VAR% in BOTH IF statements is substituted when the first IF statement is read, since it logically includes the body of the IF, which is a compound statement. So the IF inside the compound statement is really comparing "before" with "after" which will never be equal. Similarly, the following example will not work as expected:

set LIST=
for %i in (*) do set LIST=%LIST% %i
echo %LIST%

in that it will NOT build up a list of files in the current directory, but instead will just set the LIST variable to the last file found. Again, this is because the %LIST% is expanded just once when the FOR statement is read, and at that time the LIST variable is empty. So the actual FOR loop we are executing is:

for %i in (*) do set LIST= %i

which just keeps setting LIST to the last file found.

Delayed environment variable expansion allows you to use a different character (the exclamation mark) to expand environment variables at execution time. If delayed variable expansion is enabled, the above examples could be written as follows to work as intended:

set VAR=before
if "%VAR%" == "before" (
    set VAR=after
    if "!VAR!" == "after" @echo If you see this, it worked
)

set LIST=
for %i in (*) do set LIST=!LIST! %i
echo %LIST%

Another example is this batch file:

@echo off
setlocal enabledelayedexpansion
set b=z1
for %%a in (x1 y1) do (
 set b=%%a
 echo !b:1=2!
)

This prints x2 and y2: every 1 gets replaced by a 2.

Without setlocal enabledelayedexpansion, exclamation marks are just that, so it will echo !b:1=2! twice.

Because normal environment variables are expanded when a (block) statement is read, expanding %b:1=2% uses the value b has before the loop: z2 (but y2 when not set).

A real problem often exists because any variables set inside will not be exported when that batch file finishes. So its not possible to export, which caused us issues. As a result, I just set the registry to ALWAYS used delayed expansion (I don't know why it's not the default, could be speed or legacy compatibility issue.)

The ENABLEDELAYEDEXPANSION part is REQUIRED in certain programs that use delayed expansion, that is, that takes the value of variables that were modified inside IF or FOR commands by enclosing their names in exclamation-marks.

If you enable this expansion in a script that does not require it, the script behaves different only if it contains names enclosed in exclamation-marks !LIKE! !THESE!. Usually the name is just erased, but if a variable with the same name exist by chance, then the result is unpredictable and depends on the value of such variable and the place where it appears.

The SETLOCAL part is REQUIRED in just a few specialized (recursive) programs, but is commonly used when you want to be sure to not modify any existent variable with the same name by chance or if you want to automatically delete all the variables used in your program. However, because there is not a separate command to enable the delayed expansion, programs that require this must also include the SETLOCAL part.