(Not) "Use Pak Files" not working?

During some tests on packaging for an Android game, I found that unchecking the “Use Pak Files” flag on the Package section creates the .pak inside the .obb file just the same.
Diffing their unPAKed inside shows that only in the DefaultGame.ini the value “UsePakFiles” has changed (one is true, one is false.)

Is this a normal behaviour, or should the “No Pak” files be outside a .pak file as I expected?

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