yes it does because microsoft first used it in the year.
Plug and Play
windows 95
Windows 98, Windows ME, and Windows 2000 all support upgrading directly from Windows 95. Your system must meet the requirements in order to upgrade, however.
Windows 95 OSR 2.1 was the first Microsoft OS to support USB, although Windows 98 offers much improved USB support. Besides Windows 95 with the USB update, and Windows 98, Windows 2000 and Windows XP support Original USB, but Windows NT does not. Windows XP with service packs applied, supports Hi-Speed USB.
Windows 95 does not have explicit support for SSDs (Solid State Drives). This means it will not perform as well as operating systems that do support them will, and that the drive may wear out prematurely.
Yes, they do. Windows ME even supports Fat 32!
Windows 95 OSR 2.1 was the first Microsoft OS to support USB, although Windows 98 offers much improved USB support. Besides Windows 95 with the USB update and Windows 98, Windows 2000 and Windows XP support Original USB, but Windows NT does not. Windows XP, with the service packs applied support Hi-Speed USB support. Resource: CompTIA A+ Guide to Managing and Maintaining Your PC. Pg. 404
No. Windows XP does not support rolling back to a previous operating system, nor is it possible to upgrade directly from Windows 95 to Windows XP.
Windows 95 was released in 1995, hence the name.
as long the computer is after windows 95 it will play
You can't. What you can do is to install windows 95 on virtual machine, and try playing. Most likely it will not work either.
Windows 95 does not have a system policy editor, because it does not support access controls without third-party software. Windows 95 is essentially a single-user operating system.