IMO too many modifications to a simple regression. the fix/regression has by far more changes than the original fix.

To be honest, I can't understand exactly what error is being corrected. I didn't find explanations in the task or in the pull request. It seems to me that the original correction was not so correct?

The only thing that catches my attention is the

const settingFromCodeOverwritten = overwriteSetting(settingFromCode);
const settingOverwrittenDefault = overrideSetting(settingFromCode);

and then

const updatedSettingAfterApplyingOverwritten = isOverwritten ? settingFromCodeOverwritten : settingOverwrittenDefault;

In my idea, both should have the same value

I would like to see a revert of what was done and the same correction again on top of the original code, this way the original code is completely modified, to the point that I no longer remember that we wanted to update the cache at the time of the overwrite