it is deleted - for your users. only mods and admins (staff) can see deleted posts indicated in orange. records in Discourse are rarely ever permanently deleted, but it is possible. that delete removed posts after setting is the author delete setting - if a regular user deletes a post how long until it is permanently deleted for them.
note: if you ever need to restore a deleted post (orange highlighted) , you should be able to click the dots below the post to get to the undo icon. it will be hidden so you will have to unhide it by clicking “view 1 unhidden reply” before you can restore it.