If so, how do you turn it on?

With the mods menu, available when you start a new campaign, it is possible to choose not having any overwatch for the enemy. Also there are a couple of options for recharging luck.

Yes you’re right, this feature was added a while after I’d written my original post. Forgot to update my post when that happened.

What do you make of the new options. I started the first chapter with the two luck options on (since I did not know the game so well). In the end, the best gameplay experience was with just the luck recharge on kills and leaving the rest unselected.

There is also another interesting option I still did not try: the developers mention that overwatch for enemies is there to balance gameplay because of the large range of abilities of the characters of the player. It also has two or three limitations: it consumes ammunition and it works only if you approach them within their cone of perception. Also, I guess the "heat" of the characters might affect the cones of perception, as in the stealth part of the missions? Well, this preamble is to say that one of the new mods improves the range of abilities of the enemy characters. This would make for a more symmetric gameplay. What do you think?

To be honest I haven't played much after the mod options update, just saw that it had come up and went on with my normal settings. Time to get playing again I guess. :) I liked the fact that enemies had the overwatch option even though I could understand why few players didn't like it, guess the devs saw some logic in what they said as well. In fact it was the only mode I played this game on, I played it till end when it released and while I started a run 2 I didn't complete it because I got caught up in other games. I could be wrong but heat of characters only affects how long the stick up option takes to cool down and not vision cones. Also on topic of symmetric gameplay, there is a level in game (optional) where you face off against an opponent with some abilities. (in son's campaign if I am not mistaken, although its been a while so I could be wrong)