Difference between that and which. Can that follow a comma? [duplicate]

1) Eventually, we developed a strategy, grounded in prospect theory and its associated biases like loss-aversion and availability heuristic, which exploited the tendencies of players to fold too often when they did not have money invested and fold too infrequently when they had money invested.

2) Eventually, we developed a strategy, grounded in prospect theory and its associated biases like loss-aversion and availability heuristic, that exploited the tendencies of players to fold too often when they did not have money invested and fold too infrequently when they had money invested.

My question is whether "which" or "that" is appropriate. Which word is better? Word says that "that" cannot follow a comma. Is there any basis to this?

I would say that the relative clause following heuristic is defining. Its referent is a strategy, and the relative clause tells us exactly what kind of strategy it was, rather than merely providing additional information about it. As a defining relative clause, it can be introduced by either which or that. In that case, the comma after heuristic is misleading.

I will also say that, at least to non-specialist reader, the sentence as a whole is hard to read.