Yes,, and thank goodness. Smart Control on is a requirement for the motion sensor. Once on you now have the option to keep the baseline "always on" program or can shut it off at select times and use the manual only function. Until and unless Kasa gives us a manual ability to turn on and not off via motion sense (A feature I've requested be implemented into a preset capability, which we also need to be able to call. Perhaps via "Long Press" or "Double Press") we're busted. You'll likely end up disabling motion at some times during the day.

  @dafish Thanks for the confirmation and thanks more for the context.

Yeah, I wanted to turn off motion in the middle of the night for our closet light so I had created a smart control schedule that was "manual only" from midnight to 7am.  I had left 7am - midnight blank.  I was surprised when motion still didn't work from 7am - midnight.  Once I figured it out I posted here.

One last question - having no schedule set up is the same as having a schedule created where Trigger = "Manual Only" and Brightness = 100%, is that right?

  @pimmysits 

Happy to have helped.   Mostly correct.  I believe all switches power up to the last brightness setting used unless commanded otherwise.