I don’t know this for sure, but might it be the case that this feature wasn’t available in Nextcloud 22.0.0 yet? I spoke to a colleague who runs Nextcloud for years already and he says he doesn’t have this feature on his instance.
edit: I did find a earlier similar issue, so I guess this isn’t a new feature. Maybe the default settings were different before or my colleague forgot he had set the settings in his profile to the privacy default manually already.