Explanation
The option that should be disabled on firewalls so that the sensor's man-in-the-middle attack protection works properly is deep packet inspection. Deep packet inspection is a network configuration that inspects and modifies the data packets that pass through a firewall. Deep packet inspection may interfere with the sensor's certificate validation, which is a feature that verifies that the server certificate presented by the Falcon cloud matches a hard-coded certificate embedded in the sensor. If the certificate validation fails, the sensor will reject the connection and generate an error3.
References: 3: How to Become a CrowdStrike Certified Falcon Administrator

Explanation
In order to quarantine files on the host, the administrator must enable the Next-Gen Antivirus Prevention sliders and "Quarantine & Security Center Registration" in the prevention policy settings. This will allow Falcon to quarantine malicious files and register them with Windows Security Center. The other options are either incorrect or not sufficient to enable quarantine. Reference: [CrowdStrike Falcon User Guide], page 36.