It looks like the S/MIME settings (disable/prefer) are ignored:
- Regardless of being disabled, decryption seems to work and pinentry shows up for the smime key
- Regardless of preference, openpgp keys are used
To reproduce the disable issue:
1. Disable smime
2. Kill background processes and restart Outlook
3. Open a smime mail => pinentry shows up and mail is decrypted
To reproduce the preference issue:
1. Make sure you have both secret openpgp and smime certs (I tested with ted)
2. Deactivate "Always show security approval dialog"
3. Enable S/MIME and activate "Prefer S/MIME"
4. Kill background processes and restart Outlook (just to be sure)
5. Send an encrypted/signed mail => always openpgp encrypted/signed
Note: I had both secret openpgp and smime keys of ted/edward in keyring and both accounts in outlook added, if that matters