Sorry for late response.
Yes, with both set it activates the previously active tab.
And yes, the current combination is confusing. I don't like Recently Used Order when switching tabs (Ctrl+(Shift)+Tab), neither in browsers. And I thought when "Activate left tab on closing current" setting is turned off it would mean "activate last used" or something.
It's nice to know these settings will be re-thought to make more sense and to act accordingly, specifically activating last used tab on closing current would not depend on cycling tabs in LUO manner.
Things you’d like to miss in the future...