SYMPTOM:
In Strategy Web 10.x, when users export a Report Services (RS) Document with grids to Excel, all of the formatting (color, font, etc.) persists even though the following settings are chosen in the preferences:

But when exporting the report alone, it exports with plain text as expected: without any formatting.
CAUSE:
This is working as designed. The "Export Reports" preference section is only meant to affect reports and not RS Documents. The settings that refer to HTML documents are only meant to affect HTML documents, which is a different object type in the metadata than RS Documents.
WORKAROUND:
As a workaround, URL API can be used on a textbox in the same RS document to create an "export" link that performs the "Excel without formatting" function of the underlying grid. Follow the steps in tech note KB34692 for more information.