The student's approval of publication and a possible embargo are independent of each other. They serve different purposes. If a student project is to be subject to a time embargo before it becomes openly available, for example if a scientific article is to be written from the content, it is decided by the department and notified to the library in the same way as before (Read about the embargo procedure here).
This means that the student can approve publication, but the student project can then also be subject to a time embargo if everyone agrees on it. If the student has ticked No, an embargo is of course not applicable.
