Yes, that option was added by Jeep engineering so the engine can be started in gear without stepping on the clutch when you're offroad. Some tricky maybe even dangerous offroad situations are better handled when you can start it in gear without having to step on the clutch too. That also makes it easier when working on it, you can just reach in and start it so long as you're in Neutral with the brake on.
ALL cars used to operate like that, all the ones I grew up driving like that. Our grandmothers learned to drive without clutch interlocks. The lawyers made the manufacturers add safety interlocks when everyone started to look for easy money by suing deep-pocket manufacturers for lapses in judgement or bouts of stupidity.