How does the new config_exclude_modules setting work exactly? Drupal 8.8 introduced a new setting: https://www.drupal.org/node/3079028

By adding these lines to your settings.local.php I expected the modules and their configuration to be excluded from config export.

$settings['config_exclude_modules'] = ['kint', 'devel'];


However:


kint and devel still appear in my core.extensions.yml
Yaml files related to devel still get generated.
Modules are still removed and installed based on the core.extensions.yml


How does this feature work?

Edit: I upgraded from Drupal 8.7, that seems to keep this function to work properly.
Enable the module and activate the filter by declaring $settings['config_exclude_modules'] in your settings.php file, eg:

$settings['config_exclude_modules'] = ['devel', 'stage_file_proxy'];


Now, when you export configuration (drush config-export), the selected modules should no longer show up in core.extension.yml and their configuration should not be exported.

Make sure first before doing that to remove these module from core.extensions.yml manually for the first time.

Update:
It seems to be related to a drush issues:
drush config:status does not respect excluded modules #4194