It's on the category edition page. I've checked it a while ago on our demo and everything works fine. Have you tested it on default template or on custom theme? If on custom theme, maybe there is a missing if statement, for mentioned setting.
It's the correct setting. And as you can see on our demo, https://demo.grandnode.com it works fine. If not, can you simulate the issue on it? Or provide me steps, what should I do to simulate it in my store?