The screenshot is actually showing a section called "Allow Access When Locked". In order to have your content secured, you'd want USB Accessory access turned off when the phone is locked. The screenshot is correct. Their description of the feature has it backwards.
Does the description change as you flip the toggle? Otherwise it certainly seems the like description implies it should be ON in order to achieve that behavior, not OFF.
Yes, it does. When it's off it says something to the effect of "Turn off to prevent devices from accessing your phone's contents without requiring your passcode."
Wow, when they word it that way, you wonder why it’s an option at all!
But in any case, from the screenshot it seemed confusing but with the full description of the UI it sounds like they got it as right as a cryptic security setting buried 3 menus deep could ever be.
That section is “Allow access when locked...” with a list of things like Siri or returning missed calls. Having USB accessories disabled from access when locked is the feature.