You don't need to worry about ATF not being applied if using the normal settings
It's basically just a specific scenario with the update title only on play setting.
The behaviour that'd I'd done elsewhere but missed with the folder handling (which for bigger drag+drops / add folder actions with the default will show the full path before the ATF title is generated) is to just provide the stripped filename if that's what the metadata reading option implies.
Otherwise depending on the option & how many items & how long it takes to generate the ATF title, the full filepath usually can be seen for a while before the ATF title is then applied. This is due to it using the playlist entry as-is if there's not title specified as I really don't see any point in applying the interim title when the ATF title is then about to be applied as it's just a waste of processing time.
As for using the update title only on play setting, I get why it might be reasonable to use (not that it'll likely deteriorate the life of a drive compared to what the OS is doing to it) though it's always going to be a crippled experience & having it even attempt to use ATF in that scenario then negates the point of that option in trying to minimise drive access.
tl;dr:ATF will be used where it's appropriate but setting to only read on playback will only apply it at that point.
-dro
