As I explained in the response to your email on this same topic, the behaviour you are seeing is explained in the help:
Plot harmonics at the harmonic frequency changes the way the harmonic orders for sweep measurement distortion are plotted - rather than plotting the distortion at the frequency of the fundamental it is plotted at the frequency of the harmonic, so (for example) the 2nd order harmonic distortion level for 1 kHz would be plotted at 2 kHz, where the distortion occurs. This makes it easier to correlate harmonic levels with the level of the fundamental at the harmonic frequency and also helps distinguish the effects of external noise, since noise affects all harmonics at the frequency at which it occurs. The THD trace is not affected by this control, it will continue to show the THD value corresponding to the harmonic levels at their fundamental frequency. When plotting harmonics at the harmonic frequency the harmonic frequency is used as the reference, regardless of the state of Use harmonic frequency as ref.