Sprite mode extrude edges ?

I am not sure if I understood this correctly, but “Sprite mode extrude edges” value does not seem to do anything when generating custom outline in sprite editor.

So I am assuming that it only affects how much “padding” it does when packing in the atlas?

Or if it should affect generated mesh, it seems like it is a bug? Tolerance obviously affects it but extrude edge value simply does nothing.

Or have I got this totally wrong?

It seems like the value only affects anything only if the mode is set to polygon, and the polygon mode does not even have tolerance value like it can do with sprite editor. Really frustrating to select every single sprites in the sheet to generate outline to tolerance (1) for 100s of sprites manually…