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Testmode and Validation Field settings

We are setting up our test connection to our ERP, Acumatica and a question popped up about the Testmode and Validation field settings after entering our sandbox credentials.

We wanted to confirm if the TESTMODE and VALIDATION fields are set properly to make sure all data is processing correctly when testing in the sandbox when we toggle between Test Mode and Live Mode.  It appears when we enter a 1 for the TESTMODE field the credentials fails.  However, the credentials are accepted when using the settings in the attached screen shot.

This is confusing as the notes indicate we should be using the TESTMODE field for the sandbox?

Can someone please help clarify?

Thank you!