I’m incredibly glad I found the right search string for this still-mysterious Power Options setting. To be on the safe side, I disabled it anyway when the unit is docked (or running off A/C power). Immediately after this change, Macrium Reflect backup completed successfully. By modifying the value for that entry from 1 (one) to 0 (zero), I got the missing setting back in Power Options.
This not only drops a bunch of settings from the Power Options control panel widget, it also sets the USB selective suspend to the “on” state in an unchangeable way. It turns out that HKLM\System\CurrentControlSet\Control\Power\CsEnabled is set to “Enabled” (value: 1) on Surface Pro PCs ( HKLM is an abbreviation for HKEY_LOCAL_MACHINE). In researching the missing Power Options settings, I found a post from a NIC maker (ekahau) that mentioned a weird default in the Surface Pro registry setup. WTF? Registry Edit Key to Fixing Surface Pro 3 USB Drive Drop When I first dropped into Power Options, USB settings - and a bunch of other stuff - was MIA.