The value we are looking for is federationPolicy.enabled, not federationPolicy.federating

Also the || true fallback does not work and always becomes true

src/components/nav_panel/nav_panel.js

@@ -11,7 +11,7 @@ const NavPanel = {
     chat: state => state.chat.channel,
     followRequestCount: state => state.api.followRequests.length,
     privateMode: state => state.instance.private,
-    federating: state => state.instance.federationPolicy.federating || true
+    federating: state => state.instance.federationPolicy.enabled
   })
 }