(Someone correct me if I'm wrong)
We don't intend to support collaboration between 1.x and 3.0 clients. Both are compatible with 2.x, so users can be migrated over the 2.x timeframe.
So in 3.0 we can remove "1" from the union type CompatibilityMode (maybe should change the structure of that type to make it easier to deprecate/remove in the future), and remove compatibilityModeRuntimeOptions["1"] from https://github.com/microsoft/FluidFramework/blob/main/packages/framework/fluid-static/src/compatibilityConfiguration.ts
Then we'll be able to clean up the code supporting those old configurations which aren't otherwise used.