Do these M3U settings do the same thing?

Playground Custom Channels
#1

gracenote=include

and Checking the below ?

image

#2

Different.

gracenote=include (I assume you mean as an option for a source playlist.m3u, like with Frndly or Tubi) just provides gracenote epg by using the station id and will export only channels that have it to Channels DVR.

M3U Channel IDs puts the channel-id instead of the channel number in the playlist.m3u and XMLTV that Channels DVR exports. Except for HDHR sources where it still uses the channel number. Try it out, change the setting and try again. You'll see the difference in the generated playlist.m3u.
http://127.0.0.1:8089/devices/ANY/channels.m3u
Unchecked
#EXTINF:-1 channel-id="6790" tvg-id="6790" tvg-chno="6790"
Checked
#EXTINF:-1 channel-id="golazo" tvg-id="6790" tvg-chno="6790"