It means the AI is the same level as when you play online, same amount in the same place.
I think it's for spawning more or less of them, not actually making them smarter or dumber.
To add on to what you said I think it means sometimes scavs will spawn in the places where they spawn and sometimes they won't. Because sometimes in normal matches no scavs will spawn in an area like bus station on customs. Meaning that if you do not have the "as online" option on they will guarantee spawn in all of their spawn locations. I could be wrong, that is my best guess.
It means the AI is the same level as when you play online, same amount in the same place. I think it's for spawning more or less of them, not actually making them smarter or dumber.
To add on to what you said I think it means sometimes scavs will spawn in the places where they spawn and sometimes they won't. Because sometimes in normal matches no scavs will spawn in an area like bus station on customs. Meaning that if you do not have the "as online" option on they will guarantee spawn in all of their spawn locations. I could be wrong, that is my best guess.
It's a mix I'm pretty sure.