Things I have tried
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Change Daily note’s New file location setting on Windows and check if it changes on iPhone too.
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Change the same setting on iPhone and see if it changes on Windows too.
The setting is not changed on the other device. Syncing non plugin settings work: for example appearance settings do sync, I was able to switch from dark to light mode and choose another theme, and it synced on the other device correctly. Syncing notes works too.
I tried to search for this in the forum and in the documentation, but did not find anything relevant.
Sync log from the Windows PC:
2021-09-15 08:01 - Uploading file .obsidian/daily-notes.json
2021-09-15 08:01 - Upload complete .obsidian/daily-notes.json
2021-09-15 08:01 - Server pushed [Jare-PC] .obsidian/daily-notes.json
2021-09-15 08:01 - Fully synced
2021-09-15 08:04 - Server pushed [iPhone (Jarkko)] .obsidian/daily-notes.json
2021-09-15 08:04 - Downloading file .obsidian/daily-notes.json
2021-09-15 08:04 - Downloading complete .obsidian/daily-notes.json
2021-09-15 08:04 - Accepted .obsidian/daily-notes.json
2021-09-15 08:05 - Fully synced
So it seems that the changed setting file is downloaded on the device that should receive it, but the receiver does not take the settings into use for some reason, which does not appear in the log.
Thank you for your support!