The processor settings apply to conversion for things like preview, so that would not affect it.
The editor settings will affect it.
At an OS level the general keyboard “Smart Punctuation” should be turned on.
Another thing that can affect it is the soft keyboard you are using. For example, I don’t tend to use the standard Apple keyboard and to access smart quotes I have to tap and hold, then select a double quote variation. If I switch to the standard keyboard with the same settings, smart quotes appear automatically.
Hopefully, something in that will unlock them for you.