In the host multiplayer game menu the option to use authserver side bans is enabled by default on fresh installs.
According to the following thread it's supposed to be disabled by default.
viewtopic.php?f=3&t=100027
[1.1.53] Authserver side bans enabled by default
[1.1.53] Authserver side bans enabled by default
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Re: [1.1.53] Authserver side bans enabled by default
I don't see where it was said in that thread, and it was always intended to be on by default
Re: [1.1.53] Authserver side bans enabled by default
Never mind. It appears the confusion started with the option being opt-in on headless.