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Simple Summary: Since there has been an increase in the frequency of extreme weather events (i.e., heavy rains, heat stress) due to climate change, the interaction between feeding and management issues and the required facilities to alleviate environmental effects on animal performance has become relevant. Although there is extensive literature on the implementation of confined vs. mixed (grazing + mixed ration) feeding strategies in dairy systems, most are short-term studies and there is little information on their effects on cow full lactation performance, associated with environmental exposure stress throughout their productive cycle, which depends on their calving season. This manuscript determines and interprets its effects on milk production and composition and energy balance (i.e., body condition score, non-esterified fatty acids, and beta-hydroxybutyrate) during a full lactation in two calving seasons, addressing whole-herd (extensive to whole-farm) feeding and management issues. The results demonstrate that outdoor soil-bedded milk production systems, when well-managed, have a very high milk production potential that could equate to the productive response of improved infrastructure systems (i.e., a compost-bedded pack barn with cooling capacity) under moderately unfavorable environmental conditions (i.e., infrequent heavy rains), but in worse situations (i.e., severe heat waves and frequent heavy rains), performance could be compromised. Environmental exposure during confinement and feeding strategy affects cow behavior, nutrient utilization, and performance. Milk production and composition, body condition score, non-esterified fatty acids, and beta-hydroxybutyrate were determined during a full lactation in cows submitted to (a) grazing + partial confinement in outdoor soil-bedded pens with shade structures (OD-GRZ); (b) grazing + partial confinement in a compost-bedded pack barn with cooling capacity (CB-GRZ); or (c) total confinement (same facilities as CB-GRZ) and fed TMR ad libitum (CB-TMR). Autumn (ACS) and spring (SCS) calving season cows were used for each treatment, except for CB-TMR (only SCS). In ACS, treatments did not differ in any variable, possibly due to mild weather. In SCS, milk production was higher in CB-TMR than CB-GRZ, which in turn produced more milk than OD-GRZ. Differences coincided with heat waves and/or heavy rains (similar grazing conditions and mixed ration DM intake). Milk fat, protein and lactose yield, protein content, and BCS were higher in CB-TMR, without differences between CB-GRZ and OD-GRZ. Cows in OD-GRZ had impaired energy metabolism. Under moderately unfavorable environmental conditions (ACS), when well-managed, OD-GRZ systems could equate to the productive response of CB-GRZ. However, in worse climatic conditions (SCS), performance could be compromised, especially when compared to TMR systems. [ABSTRACT FROM AUTHOR]