Unfortunately, applying these tools in the Python window apply there and do not necessarily propagate to the entire ArcMap session. I've always found this frustrating. Starting a new map document is the only "automated" way I know how to do this. Perhaps a Python add-in would do the trick, but I have not tried this.
The ResetEnvironments function can be used to restore the default environment values, or the ClearEnvironmentfunction can be used to reset a specific environment.
import arcpy
# Reset geoprocessing environment settings
arcpy.ResetEnvironments()
# Reset a specific environment setting
arcpy.ClearEnvironment("workspace")
Jayanta Poddar Thank you for the help, I had paste this function in Python Window and rechecked my Environment settings, it didn't seems to be working.
Unfortunately, applying these tools in the Python window apply there and do not necessarily propagate to the entire ArcMap session. I've always found this frustrating. Starting a new map document is the only "automated" way I know how to do this. Perhaps a Python add-in would do the trick, but I have not tried this.
Jayanta Poddar, I have strictly followed the instructions to execute the expression you have provided but It didn't changed the settings automatically. I am not sure what went wrong. I am using ArcGIS 10.3 installed on C:\Program Files (x86)\ArcGIS. However, I am thankful for the anticipation and your time.