You are correct. Well done finding that.
Live TV follows the setting at "Options > Tree & View > Full Screen (Display View, Theatre View, etc.) > Resolution".
While Video playback, including recorded TV, follows the setting at "Options > Video > Display Settings".
I never noticed because my Tree & View settings were set to Desktop, and my Desktop was set to 50Hz.
I think that would be unintentional, and may even explain some issues with Live TV playback, which sometimes seems to work less well than Video playback for some users.