I believe when publishing, CSS and JS is minified as using the Dev Tools the links have a *.min.js or *.min.css at the end of the assets. Besides the HTML code.
I know that browsers will “pretty” the code when viewing it in the Dev Tools. So, it is minifying the code, but it’s showing the un-minified version when viewing them.
The exported versions will also be minified with the settings active but publishing them anywhere and then viewing them through the Dev Tools will also show the “pretty” version.
It’s technically working as intended, browsers are just weird
If it’s online, technically it’s free game. Obfuscate your JavaScript
I have the settings turned off for export and even after publishing, the code is automatically minified. I’m not sure with SFTP, but with using the Bootstrap Studio Sites.
We plan to reorganize these options and add a dedicated publish settings screen. For the time being the export settings are used when publishing as well. We should have it ready in one of our next major releases.