The Generate shadows option overrides all other lighting shadow options (global and source) to generate raytraced images without shadows. With this setting you can avoid manually turning off shadows for every individual light in the model. By default, this option is selected.
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When this option is disabled, no shadows are generated in the raytraced image, even if all lights have shadows turned on.
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Because the effect of these settings is different for each model and material in the model, you are encouraged to modify these settings and re-run the raytracing command several times to get the effects that you want.