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"Require valid email" setting (1) is not related to the feature of "allowed/disallowed emails domains and patterns (2).

"Valid email" means - email validated by clicking on a link sent to that address.

The second group of settings regulates users with which emails can or cannot use the site. This way you can allow only people from your organization to join.

Even if your email is one of the "allowed" emails and is not matching any disallowed patterns you might still want the user to prove that they have access to that particular email.

Regardless, I'd always recommend to use the "require valid email" for the account registration.