Back in D8753, we added this flag so that we could prevent web clients from registering an account via SIWE (ENG-2930).
For ENG-4074 we want to do something similar bit a little different on native. We have a SIWE flow for login, and are introducing a new one for registration. We want to use the doNotRegister flag to prevent account creation via the SIWE login flow, so that we can redirect the user to the registration flow.