Question about Neighborhood Stories and Auto Age

Yes. That is correct. I play with aging off a lot and I just usually make a cake and age the kids on a timeframe that fits my scenario. Neighbourhood stories is separate from aging, so if a friend of your sim has a kid and you have unplayed sims(households) aging on then they will age. If it’s off all born sims are frozen in age. You can turn off aging for both unplayed and played sims.