Jamal, thank you for starting this discussion.
Dan, I appreciate your comments on this post, as i have the same questions as Jamal. I use the 'clear projection' as a stop gap measure to prevent 'projecting on the fly' in ArcMap, almost identically to how Jamal uses it.
My concern is how ArcPro knows which projection to use for the layer. If the projection (or coordinate system) is defined incorrectly, how would ArcPro know? Where would it 'put' the data in space?
It sounds as though it would project on the fly, to the incorrect coordinate system?
Agreed that determining the actual coordinate system ahead of using the data is the best approach. I do so, and direct my students to do so, however, this 'clearing of the projection on the fly' is a good stop gap measure to ensure that the data is lining up.
Thoughts?