check which version you are running. There was a bug at one point and it was fixed. Whether the latest release is still confusing or not, it does do what it says now.
General Settings > Extension Recording Override has no effect for me. I have the latest version 2.10. I enabled recording on an extension, and it recorded; then I enabled this override, called the extension, and it still recorded. Previously, enabling this setting would change macro-record-enable to simply exit. I think that macro-record-enable has been replaced with sub-recording-check; this setting has no affect on sub-recording-check. The only thing this setting does is change the state of the RECORDING_STATE global, which is never used.