First, upper=False/True will decide whether PyTorch will look at the upper or lower “half” (including diagonal) of the matrix. You pass in a lower lower triangular matrix, you want upper=False because otherwise it’ll look like a diagonal matrix to PyTorch.
After this, PyTorch will consider transpose=False/True and transpose it. But if, as in the example you posted, PyTorch gets a diagonal matrix (because the upper half is only the entries in the diagonal), you’ll get the same result whether you transpose or not. If you pass in a matrix that is not diagonal, transpose will make a difference, just as you expect.
Best regards
Thomas