The "Reverse Battle Animations" only affects.. animations. It doesn't affect the character sprites (a.k.a. Battle Charsets).
To test this, use the "High Tide" default skill. Normally, the water effect goes from upper-right to lower-left. When in a "Back Attack" situation, the water goes the same way, unless the "( ) Reverse Battle Animations when Attacked from Behind" checkbox is selected - in that case, it goes from upper-left to lower-right.
Hybrid Mode
