When modifying the ClientChatModules folder, I noticed this setting:
Could anyone tell me what this does?
Display names are like roleplay names. this is how those roleplay name systems work. if you make module.playerdisplaynamesenabled = true, roleplay names can be there and yeah stuff
use display name means that it just uses roleplay name in chat
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For now they do nothing, but there is a possibility that there will be display names on Roblox.
I think this is a toggle-able feature for the up and coming Display Names
No, it is not. This has been in the code base for a long time and is completely unrelated to the display names that you are referring to.