Yeah that was 19.4. It's doesn't proxy everything unless explicitly set to. Just thumbnails I believe. But I could be wrong. And many instance owners would be allergic to that as it leaves them on the hook for storing content. For example... someone posts CSAM... a copy of that is now on your server. You get police raided and you're fucked.
Actually going over it briefly looks like it has a few available options for what it will cache...
I refuse to enable it myself for the above reason. I would venture 99% of instances out there would also refuse for liability and bandwidth costs.
Not anymore. You can opt out of it for the most part.