This switch activates the possibility to install a 1.x binding when a 2.x binding is also available
The insteonplm & chamberlain bindings are 1.x bindings, so this switch will not have any effect. It would have an effect if there were insteonplm 2.x and chamberlain 2.x bindings but you still wanted to install their 1.x versions.
You should have the bindings available in Paper UI: