I noticed today that if we have the box unchecked to show online status it still shows when someone is online. I tried checking the box as well it has no effect.. Just a heads up I found a bug.
If you hover your mouse pointer over where the pointer is pointing it will have a popup showing your online status. Having that box unchecked should hide our online status.I'm not sure about which setting you're talking. But if you're talking about the setting on the screenshot below then it will hide your online status. Meaning that other people can't see your online status but you'll be still be able to see other people their status. It makes you invisible but you can still have a full view yourself.
View attachment 18821763