(1) I recall when the initial version of Win 10 (OS Build 10240) upgraded this Dell Inspiron 3542 (which was Win 8.1), it did turn off restore pointsts. But no succeeding version of Win 10 did that, & I took them all up to the latest 20H2. Along the way, I did one clean install which also did not turn it back off. But they all did wipe the points & start fresh. That's normal.
(a) What is your info at "right-click START, System"...?...
Edition Windows 10 Home
Version 20H2
Installed on 8/16/2020
OS build 19042.928
Experience Windows Feature Experience Pack 120.2212.551.0
(b) Have you undergone an upgrade or did it come that way? Well, anyway, has it been that way since you did the factory reinstall?
(2) But, I say, go ahead & turn restore points ON. As Greg says, they are an early recourse in the event of big trouble to get back to a working state. (Individual driver/app/update uninstalls might be tried first). Restore points undo all settings, driver/program installs as well as Quality updates that occurred after the restore point was made while keeping files.
It is less drastic than a Windows system image restore which restores whole partitions: EFI, MSR, Windows (C:), Recovery & any others one might have included in a Windows system image backup. And files (except those on OneDrive) made since the image was made are lost.
(3) Regarding "using system protection on a drive that contains system image backups will cause other shadow copies to be deleted faster than normal", that sounds like it's referring to the external drive onto which a system image is made. At the end of the image making process, a shadow copy is written onto that drive. So, I make mine onto Seagate Slim Red (E:), but I keep Protection OFF for that drive...

[Frankly, I don't even know what it would accomplish to turn it on. Why would one want restore points for a drive other than Windows (C:)? Is it some kind of backup for the drive? Anyhow, I've seen Greg & possibly others say, it is problematic to turn on restore points for any drive other than Windows. I guess, if one dual boots & has two Windows partitions, one would want it on for both, though.].
(4) Here is how my Windows (C:) is configured...

The blurb does say, as you rightly opined, that only old ones should get deleted when a new one needs space. Those figures fairly well match what VSSAdmin reports under ListShadowStorage below.
(5) Let's compare VSSAdmin...
C:\WINDOWS\system32>VSSAdmin List Providers
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2013 Microsoft Corp.
Provider name: 'Microsoft Software Shadow Copy provider 1.0'
Provider type: System
Provider Id: {b5946137-7b9f-4925-af80-51abd60b20d5}
Version: 1.0.0.7
Note: I suppose you will have Dell as a provider as well as Microsoft.
C:\WINDOWS\system32>VSSAdmin List Shadows
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2013 Microsoft Corp.
Contents of shadow copy set ID: {123bc331-7dc8-485c-89ff-0ea0b02fd720}
Contained 1 shadow copies at creation time: 4/8/2021 2:03:18 AM
Shadow Copy ID: {a2fc1d2c-9eeb-4d88-a77c-c7b0ee1cdb14}
Original Volume: (C:)\?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Shadow Copy Volume: \?\GLOBALROOT\Device\HarddiskVolumeShadowCopy2
Originating Machine: PCRsComputer
Service Machine: PCRsComputer
Provider: 'Microsoft Software Shadow Copy provider 1.0'
Type: ClientAccessibleWriters
Attributes: Persistent, Client-accessible, No auto release, Differential, Auto recovered
Note: 4/8/2021 used to be in Previous Versions along with the next two, but it has dropped off, & one of the following dropped off. I'm unsure why, but maybe it was because I adjusted the space allocated to shadow copies. Also, I'm unsure why there were two for 4/14/2021 in the first place since I made only one system image backup on that date. There do seem to be three restore points (below) made on that date. I guess the top two made it into a shadow copy.
Contents of shadow copy set ID: {a7ed1dc8-555d-4e94-879a-d02aa6c68200}
Contained 1 shadow copies at creation time: 4/14/2021 12:41:46 AM
Shadow Copy ID: {c788cb54-cf4f-4738-b37b-2d4b8eb0c4e3}
Original Volume: (C:)\?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Shadow Copy Volume: \?\GLOBALROOT\Device\HarddiskVolumeShadowCopy3
Originating Machine: PCRsComputer
Service Machine: PCRsComputer
Provider: 'Microsoft Software Shadow Copy provider 1.0'
Type: ClientAccessibleWriters
Attributes: Persistent, Client-accessible, No auto release, Differential, Auto recovered
Contents of shadow copy set ID: {93ccfbbb-7f28-4ea9-be96-dee8852e4132}
Contained 2 shadow copies at creation time: 4/14/2021 9:51:33 AM
Shadow Copy ID: {46ae862b-3bb1-4891-b450-fddc50994d2d}
Original Volume: (C:)\?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Shadow Copy Volume: \?\GLOBALROOT\Device\HarddiskVolumeShadowCopy33
Originating Machine: PCRsComputer
Service Machine: PCRsComputer
Provider: 'Microsoft Software Shadow Copy provider 1.0'
Type: ClientAccessibleWriters
Attributes: Persistent, Client-accessible, No auto release, Differential, Auto recovered
Contents of shadow copy set ID: {0cb5a7d4-d818-43da-bfbb-739d64d552b3}
Contained 1 shadow copies at creation time: 4/21/2021 11:44:34 AM
Shadow Copy ID: {1b9309d1-3411-4741-9a10-ce665eb803ac}
Original Volume: (C:)\?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Shadow Copy Volume: \?\GLOBALROOT\Device\HarddiskVolumeShadowCopy49
Originating Machine: PCRsComputer
Service Machine: PCRsComputer
Provider: 'Microsoft Software Shadow Copy provider 1.0'
Type: ClientAccessibleWriters
Attributes: Persistent, Client-accessible, No auto release, Differential, Auto recovered
Contents of shadow copy set ID: {8b6d3091-b360-444b-95e6-205554b9c831}
Contained 1 shadow copies at creation time: 4/23/2021 1:31:14 PM
Shadow Copy ID: {f5b0e56c-5969-4d55-86a4-78d556d92eb0}
Original Volume: (C:)\?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Shadow Copy Volume: \?\GLOBALROOT\Device\HarddiskVolumeShadowCopy64
Originating Machine: PCRsComputer
Service Machine: PCRsComputer
Provider: 'Microsoft Software Shadow Copy provider 1.0'
Type: ClientAccessibleWriters
Attributes: Persistent, Client-accessible, No auto release, Differential, Auto recovered
Note: I just made that last one (4/23/2021) to see whether it would add to Previous Versions per an article Greg posted. It did not. The only thing that puts stuff in there for me is the making of a Windows system image...

C:\WINDOWS\system32>VSSAdmin List ShadowStorage
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2013 Microsoft Corp.
Shadow Copy Storage association
For volume: (C:)\?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Shadow Copy Storage volume: (C:)\?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Used Shadow Copy Storage space: 9.06 GB (0%) <<< Huh?
Allocated Shadow Copy Storage space: 9.78 GB (1%)
Maximum Shadow Copy Storage space: 18.6 GB (2%)
Edit: OK, today it shows...
Used Shadow Copy Storage space: 9.78 GB (1%) <<<I guess it compares against
Allocated Shadow Copy Storage space: 10.2 GB (1%) my 1TB HDD & just now hit 1%
Maximum Shadow Copy Storage space: 18.6 GB (2%)
C:\WINDOWS\system32>VSSAdmin List Volumes
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2013 Microsoft Corp.
Volume path: C:\
Volume name: \?\Volume{e25e0508-48be-470f-a312-9a0ea0ce543e}\
Volume path: \?\Volume{457ef4fb-b253-437a-8212-e3b0b7dc0926}\
Volume name: \?\Volume{457ef4fb-b253-437a-8212-e3b0b7dc0926}\
Note: There's an entry in my Registry that indicates that 2nd volume is my Recovery partition. I wonder why there isn't one for EFI partition.

(6) Here are my restore points...



It's the most I've ever seen. 8/16/2020 matches the date of my upgrade to 20H2. (Or -- wait a minute -- it was the date I did a repair-install of 2004 over 2004 which on 12/8/2020 I transitioned to 20H2 with the Enablement Package. That just turned on switches. An actual upgrade/repair-install clears the restore points.). But I don't recall ever seeing that many. Maybe playing with VSSAdmin has awakened some. When I click the bottom one & then "Scan for affected progrms", I get this...

I think you probably are right that Dell Support Assist is messing things up. It is duplicative of what Windows already has & I'd uninstall it. In fact, I did uninstall mine long ago (but can't recall whether mine did system restore). I do recall neither it nor Dell Update ever fetched all there was for me at the Dell site. I had to go & get the others manually anyway. Furthermore, Windows, itself, eventually fetches drivers on its own through Windows Update (that are supplied by Dell &/or component manufacturers). Mine won't get BIOS updates that way, though. Yours might get those if it's a newer model than mine.
But I can't hate Dell seeing as this computer made it from 10/31/2014 to now taking all the upgrades without serious mishap. And I can't hate Microsoft.