Confirmed. I can indeed see it over in the text formatters.
I can totally see why it's been moved there, but honestly, I would never have thought to look there; I think of that area of the config as being for editor stuff rather than token stuff. But that confusion can be cleared up with a documentation change. Thanks for the clarification!
And thanks for the awesome module. One of the most incredible and yet underrated and unknown IMHO.
I note that clear_tokens was moved to the editor's config in v4.
So, for anyone who may need the workaround in the meantime, you can change the default behaviour via:
drush config:set editor.editor.iff_ace_editor settings.clear_tokens true
NB: the workaround in #12 does not work for me, the warning moves to the new comment.
Thanks for the patch, I confirm that it resolves the warning.
In other news I have realised why I wasn't seeing 'Paragraphs Responsive Background Image' as a formatter - I misunderstood the instruction (on the module's project page): 'Create or modify the media image display settings and choose Paragraphs Responsive Background Image as the formatter'. I thought this was referring to the media image field referenced in the preceding step and that the reference to 'modify the media image display settings' was to to the formatter's options (the gear button).
I now realise you were actually instructing the reader to create a new Media Type (of type image) and then in the 'Manage display' of that new media type to set the formatter there. You may want to consider enhancing those instructions.
In any case, thanks for the patch!