Hi Dave,
Yep this is the expected behavior and it is the same in SC 3.4.0. It is an all or nothing option. I will look at documentation it sounds misleading.
As for next release, I will open feature request for this. I am not sure how tricky it is to change the behavior but we will look into it.
So just to understand you only want it to apply to a volume? So once a qtree is included from volume, it is all or none for that volume but other volumes do not apply?
Keith