It limits the charging rate for that charge session only if you choose a value below Maximum. Next time you start the car the setting should reset and default to Maximum.
And yes - AC charging only. If you have a 7kW wall box then you want it at maximum anyway. If you're using the MG granny cable then that regulates the maximum current anyway (10A max) so there's no point in changing the setting (unless you're concerned about the quality of the wall socket/wiring behind it). In other scenarios then you need to think about whether making a change is warranted.
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