Please no… For the love of Foss, no. Apple would start making private changes to the ActivityPub protocol to support mundane things like images and polls in their own way while images and polls from other instances wouldn’t load properly and would be in a green bubble.
That is how it was at reddit during/before/relatively after the digg exodus.
I’m not sure those two settings should be compatible? If it’s a private instance then it means it should not federate.
I guess it was an oversight regarding breaking changes. What error did you get? It might help some people who’re experience similar problems.