Currently, the default view is to have them all checked (but unapplied) until the teacher saves the "Display settings" for the first time. This is misleading as the settings are not applied yet but it appears that they are because the boxes are checked. If the boxes show as unchecked, teachers will know they need to check the boxes and then click save (which is what they would have needed to do but didn't know with the current setup).
I've got a similar idea that goes into more specifics as to why the current interface is so, so bad. This needs to be fixed!