It failed for me when I’ve tried it before and i had that setting toggle enabled. But it may work sometimes if the connection stays active long enough in the background.
Discussion
Thanks for your help! Seems to work only for smaller amounts
One way you could do it is to send the sats to your alby wallet, then bring Alby up on another device and send from there to Phoenix on your phone while it’s open in the foreground.
I was able to send from Zeus directly to Phoenix but smaller amounts. Not the whole amount I used to open the channel. It seems like it didn’t like the bigger amount. Maybe on Zeus’ end? No idea.
At least I was able to get it out. I did it in 4 transactions instead of 1
Hmm in that case it could have been that the larger payment had a fee higher than the default limit in your Zeus settings. It would make sense why the smaller payments still worked, as they would have lower fees. 
Thanks you corn! nostr:npub1m64hnkh6rs47fd9x6wk2zdtmdj4qkazt734d22d94ery9zzhne5qw9uaks has suggested to raise the limit as well. I think the issue is resolved 🫂
Nice! 💜🤙