We don't use patrolled edits on wikipedia, so this should be removed from watchlists. This does nothing, just confuses users. It's not in recent changes.
Actually, it doesn't work for new pages : edits creating a new page that is not yet patrolled are shown even if patrolled edits are hidden. So this does nothing. Although it may be considered a bug, the use case of this setting for watchlists when $wgUseRCPatrol is disabled is so insignificant that it should rather be removed, as it has been already removed for recent changes. This should disappear when $wgUseRCPatrol is set to false.