I tried the option "enable free camera" both on and off, and the result was exactly the same.
It is as if it did nothing.
Maybe a bug?
I noticed the same thing...or the lack of any difference when "enable free camera" was on or off.
What really bugged me was the camera constantly resetting to the middle point on the vertical axis when I would move strafe left or right. I eventually got used to it, but it was a pain trying to open a chest, have to move just a bit and then look down again.
