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"Only loadable on demand" is a Blizzard option available to addons that allows the addon to stay unloaded until it's actually needed. For example, DBM utilizes this to keep massive amounts of raid data unloaded and out of running memory until you actually enter that raid. For Bagnon, the Config module stays unloaded until you load the options. With it unselected, you cannot change anything Bagnon does.
As for the issue where you can't see other characters in the tooltip, you need the BagBrother addon enabled, which comes with Bagnon.
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