Creates new media items - help

[m4granger]

I'm trying to avoid having multiple splits in items when recording overdubs/takes.
I've tried Options > New recording that overlaps > Creates new media items in lanes.
That seems to work fine. I can mute the items and unmute the one I want to listen to.

But, if I turn off that option and say go back to the default all of the items then display on top of each other.
I don't seem able to switch between the normal Reaper take mode and the create new items mode?

Have I missed a setting or am I doing something wrong here? Do I have to make a decision on how to record takes for the whole project?

Grateful for any help. I would really just prefer being able to start and stop an overdub anywhere and end up with an item which is exactly that length to work with - rather than chopping up as the default mode seems to.