Everything looks fine.
"Activate Paint Tool When Changing Color" - this option doesn't change tool from Eyedropper to Paint when Eyedropper was manually activated.
It will activate Paint when you pick a color from Colors panel or toolbar, and active tool doesn't use a Color (for example Smudge, Eraser, Select etc). Eyedropper is a kind of tool that has "Color" property, so "Activate Paint Tool When Changing Color" doesn't work here.