Failsafe HOLD vs NO PULSES | which is right?

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How should you set your receiver failsafe? NO PULSES, right? What if I told you that sometimes it didn't matter if you used HOLD vs. NO PULSES?
Credit goes to Paweł Spychalski for originally documenting this:
His original video is: INAV and Failsafe - especially for FrSky owners (but not only) and you can check it out to hear his argument in full.