CONFIG_CHIP_LAST_FABRIC_REMOVED_ERASE_AND_REBOOT Not Working

nRF connect SDK 2.7.0 CONFIG_CHIP_LAST_FABRIC_REMOVED_ERASE_AND_REBOOT KConfig option is not working, it is not erasing nvs and not rebooting device. Although I have enabled it like this:
CONFIG_CHIP_LAST_FABRIC_REMOVED_ERASE_AND_REBOOT=y in prj.conf file. 

Also it still says device is already commissioned. 

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