20x: https://qa20-mysql.nightly.sakaiproject.org/, build: aa0926c6 - obviously the template has been updated because the option is there now. 

I didn't do any work to modify it. I think someone would have to resolve https://sakaiproject.atlassian.net/browse/SAK-34583#icft=SAK-34583 to make it completely automated by default or else someone on the core team would have to do what I suggested. Still, there's probably hundreds of features not enabled by default, I'm not sure why this should get special treatment. If we want it tested as part of core Sakai it should be enabled without any special OOTB hacks.

Even with the database refresh on 1/10 for 20x, the option is still not available by default on 20x. I think this will make verification more difficult on 20x for QA for any tickets resolved for automatic submissions since the option is there by default on the other servers.

I manually updated the default template as an admin in my site so I could continue the testing, but I strongly believe this needs to be the default on test servers considering it is an important piece for many schools and needs to be tested thoroughly when doing regression testing.

This is just a configuration issue, you need both the property and an SQL run to update values in the database so the instructor can edit the setting. You can enable instructor editing manually by logging in as admin, going into a course with Samigo, clicking "Assessment Types" and in the default changing Submissions->Automatic Submission so it can be edited.

This SQL file could also be updated here, maybe I can get to that if nobody else does.
https://github.com/sakaiproject/nightly-config

I'm going to lower the priority of this one as it's just a really just a misconfiguration of the server. Also this option is still not turned on by default, so until that happens it's debatable if it should be getting added to every nightly server. This was something it looks like we wanted to do way back in Sakai 12. . .SAK-34583