Ok, this is an error in the owners manual. I just went out to my vehicle and tested.
Setting of Concern is Settings -> Vehicle -> Comfort and Convenience -> Remote Mirror Folding
if this setting is OFF,
with the vehicle off:
Pressing Lock on key fob, or Holding Lock on key fob, or Pressing the Lock Button on the outside door handle, or pressing the lock button on the inside of the door all DO NOT fold the mirrors.
if this setting is ON
with the vehicle off:
Pressing Lock on the Key fob locks the doors and folds mirrors
Pressing button on outside door handle locks the doors and folds the mirrors
Pressing the lock button on the inside door panel does not fold the mirrors
Above is true for pressing Unlock, just that the mirrors unfold instead of fold.
with the vehicle on:
Mirrors do not fold with pressing outside door handle button, lock on the fob, or inside door lock button.
They will fold by pressing the mirror fold button on the inside door panel.
I did not test the walk away lock feature, as I do not use this.