An interrogation about labels in condensing

Hello friends,
I’m wondering about the relevance of this setting in Engrave options > Labels.

In fact, taking the stem into account will result in the instrument numbers being displayed sometimes vertically and sometimes horizontally (when we have only two players in the condensed staff), which isn’t correct: one usually chooses one or the other.

Looking at the illustrations accompanying these settings, I conclude that this settings is relevant only if we have three players on the condensed staff, but should be avoided when there are only two (which is very common). Am I right?

The first choice is dynamic, meaning it will reflect how the different instruments are condensed at the start of each system (there can be 2 or 8 instruments, it does not matter), whilst the second one is set once and for all and doesn’t give any clue on how the condensing takes place.