Using Client Subnet in DNS Requests
Published Sep 14, 2018
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The information about Prefer Client Subnet as described in this article and help menus, was created with the topology in mind, but as indicated above, also applies to persistence.
Your conclusion is correct.
Also, just extra information, there is also a global setting for Prefer Client Subnet, besides the wide ip setting as you said.
(v14.1.0) DNS > Setting > GSLB > Load Balancing
In relation to windows server, I can't add anything helpful.