I have a tiny little toolbar that is nothing but the Draw Above/Below/Inside indicator and the current tool. It'd just be the Draw Location widget but apparently you have to show the current tool in every toolbar. A lot of the time I work with the main toolbar off and just this up.

Switching to another tool and back doesn't clear the blue dot, even though I've checked the Pencil's settings and seen the new options, and the dot's vanished from the main toolbar.

The blue dot does go away if I close and restart Illustrator so it's not like this is a major bug but it just makes me feel itchy.