That "Notify on Assignment" setting means "Notify an Author when a Content Object [Task] has been assigned to them for processing" (i.e. when the Assigned to field for the object is changed. It has nothing to do with course assignments.
To the best of my knowledge there is no automated notification to users when a new course is assigned to them. I personally send out a broadcast notification to the same entity the course is assigned to, to let them know, but I don't have that many courses so it is not too much effort. It would be a good enhancement to ask for, as I know a few customers have asked for it.
Bluesky
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