Explanation of Endpoint security > Microsoft Defender Antivirus policy > Scan settings

I agree the wording (or order or indentation or something) isn't very clear.

First things first: "Disable catch-up [...] scan" will disable the feature if set to "Yes" and enable the feature if set to "No". It's the confusing GPO-settings all over again :).

The next question is a little trickier. See, the "daily quick scan" and "scheduled scan" operate independent from each other.

A daily quick scan is always performed. The "Run daily quick scan at" setting merely allows you to tell Defender AV at what time it should run.

Additionally, you can perform a scheduled scan (which, to add to the confusion, can also be of type "Quick scan"). You should interpret the "Scan type" setting as "Scan type to use for a scheduled scan" (which is, coincidentally, its name in GPO-land).

Little tip: if settings (and their docs) aren't clear, I always try to find the GPO it originated from. Those descriptions are sometimes clearer. Don't be fooled though, as the settings in GPO might be turned around. For example: the "Disable catch-up [...] scan" settings are called "Turn on catch-up [...] scan" in GPO-speak.