On macOS 26 DB running on M4 MacBook Air, I don't see power nap in that place. I see "Wake for network access" which might be the new thing and it's set to "Only on Power Adapter" by default.
Turn Power Nap on or off for a Mac desktop computer
On your Mac, choose Apple menu > System Settings, then click Energy in the sidebar. (You may need to scroll down.)
Turn on Enable Power Nap.
Note: This option is only available on Intel-based Mac computers.
You can see (and change) the settings via Terminal, 'pmset -g' will show the current options.
you can also use pmset to programmatically enable/disable low power mode (which i do when the battery gets too hot for my liking even before thermal throttling kicks in)
This seems to be available as a first party config option