Yes, sir.
But this looks like a bug to me.
Why would caching have anything to do with file edit? Caching or not, I have edited this file and it has been saved remotely. This is an explicit change and WinSCP is aware of that. For what reason would anyone not want to view that change has happened?
Even more, I observe this pane to make sure that when I save the file, the changed content was successfully transferred.
I would rather understand it like, if caching is on, than it wouldn't refresh - sounds more logical, but actually I demand from WinSCP that it always reads and refreshes, so my caching is off.