Is there a different-looking menu that you're talking about on another version?
(My example of the same screen, slightly redacted)
I'm a bit surprised by this -- it transitions from dark gray on light gray when it's off to _bright_ white on _bright_ blue when it's on. This would seem to mirror many physical things that have status lights which are not illuminated when disabled and are illuminated when enabled. What's the source of initial confusion for you?
Ironically, you can see the team trying to solve this in material's filter chips by adding a checkmark: https://material.io/components/chips/#filter-chips
The good ones also switch between greyish being off and some color (e.g. green or blue) when on. But not all of them change color, so I tend to toggle them to see if this one of the colored ones -- and thereby confirm what setting it was on.
(ps. In general I do like material and flat designs, it's just these checkboxes I find hard to read)
I know I still find it confusing and occasionally have to toggle the switch to both positions before working out which position I want.
I have been using GUIs since the 80s (remember Atari ST GEM). Not once have I been confused about whether an item was selected or not.
Enter material design.
On android's slide down config screen (the one with wifi, bluetooth, etc toggles) I always have to stop and think a bit to determine if wifi is on or not.
Similarly, on many other config screens, horizontal sliders that snap to either the left and right positions are used to indicate on/off but it is never clear which one is which.
I believe there are proper check boxes somewhere in the Widget set but they are not used much.
To me this seems like a case of aesthetic dogma trumping usability.