Lesson Settings under Teacher View affect the way teachers see the lessons when in the Teach View of the Lesson Engine, most likely going through the lesson with their students.
These options are particularly helpful when projecting lessons from the Teach View for the whole class to see.
Show Teacher's Notes
Note that this differs from the option under Editor Settings in that it hides the Notes from the actual Lesson in Teach View, not just from the Lesson Creator!
Show Live Assessment Progress
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