Description of feature:
When set to "never", the user never receives the last published item, which avoids wasting traffic on unusable notifications.
Sending the last published item is useless with XEP-0402, and https://github.com/xsf/xeps/pull/835 makes it encouraged to use it.
Thanks for the report.
Publishing last item is currently only implemented in mod_pep in a non-generic manner.