Difference between that and which. Can that follow a comma?

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?