Yes. The stream-proof overlay is part of the license. Turn it on before you start a recording or a stream. It is meant to keep ESP and wallhack drawings off the capture. If you toggle it after a clip has already been saved, that clip can still show the overlay. Test it once in a private recording before a real session.
Stream-proof does not change how the tools look to you in the game. You still see the boxes and outlines. It changes what the capture software receives. It is not a promise about other software on your PC. If a capture app still shows the menu, try the overlay toggle again and restart the capture. Setup and Support can help if the switch itself is missing after a patch.