Threads like this are a good reason one should peruse the forums on a regular basis. I must have glanced over this option many times but, I guess, never noticed it enough to check into it. Just looked at my game and it is unchecked.
I don't think OOTP has ever actually generated any "out of thin air" players for my game even with this unchecked. With my style of play I think it would be hard to miss. I have a 25 round draft with players created for 26. Also have default international FA, international established FA, and independent league discoveries FA enabled. In any case I'm still glad I to see this post and check that box just to be sure.
