It may just make the game think you still have them in memory, only way to tell is to turn off the option, shut down the game, restart it and see if they are still unlocked.
Sadly, they are all still unlocked.
I found option 8 unlocks all blueprints and option 9 just temporarily lets you do everything, craft, built, upgrade, until you toggle it off again.
I used 8 once and then made a new character and from then on, only used 9 and rekeybound 8 to something I can't press.
I just tested this with a new character and new world. And it looks like option 9 does make you see everything in the build menu and craft menu. But not permanently like with option 8
So option 9 seems to be the way to build, craft and upgrade WITHOUT unlocking all the recipes in the game premantlyy on your character.
So i think option names and descriptions need to be changed slightly to make people aware of this.
So big thanks to TehUnicron for finding this out!!
Same issue - option 8 bricked my entire character. Had to delete it all and start over. It was too game breaking.
Just like in games when you add gold and it gives 540,424,242,122 gold. No fun there.