It was enabled for me at the time of banning, so I'm not discounting that as a possibility. But, is it possible that said option is just a luxury for the friends? They can see or not see what you're playing, but the setting never said Nintendo can't see. That being said, the titles I used weren't for long. NTR CFW for instance was 2 seconds, how long it takes for it to boot typically, but of course that doesn't mean they don't notice it. JKSV, 30 seconds, FTPD, up to 5 minutes, Pokemon Moon, at least 18 hours. These are all from the activity logs.