When you edit your library, on the Advanced tab you’ll see this:
The “Plex Music” scanner is the newest, and “Plex Music Scanner” is the legacy agent. The agent settings in your screenshot are legacy features, and only apply if you are using the legacy “Plex Music Scanner” scanner (I wish they would put “Legacy” in the name on that dropdown).
If you are using the new “Plex Music” scanner, this How-To article explains how to configure Plex to prefer your embedded/local metadata:
