Does the Trackpad Setting affect system globally?

Hi guys,
I'm on M1 Macbook (macOS Ventura 13.0.1).

I always use my thumb to work with Trackpad, it usually works fine except in Parallels Desktop and some games (for example moving camera around by just moving cursor) when I have to sometimes repeat my moving action and it doesn't work the first time.

I went to Trackpad Settings > Palm/Thumb Recognition > Unchecked Thumb / Palm Handling

However, it is still the same, Trackpad still blocks my palm entirely, and occasionally my thumb.

Does this affect the entire system? do I need to do anything else?
I don't mind accidental touches, just want my trackpad to always register any touch.

P.S. I have installed the Process Priority Helper Tool too.