The External extensions check setting does not block all Chrome extensions.
When this option is unchecked, it blocks the installation of external extensions in Google Chrome. External extensions are third-party Chrome extensions that are installed from outside the official Chrome Web Store.
If the option is enabled, Chrome allows external extensions.
So, if your requirement is to block every Chrome extension, including extensions from the Chrome Web Store, this setting alone will not cover the full use case. You would need to use an additional restriction method, such as deploying a script or browser policy that blocks extension installation more broadly.
Regards,
Mary Romero