I have the same LiteOn 24x model and it does the same. There is a similar thread in the LiteOn forum. But anyway here is the answer to your question:
CloneCD does not automatically change the setting back. The setting couldn’t be set in the first place. The description in the log about changing back to hardware error correction setting is wrong. It should really say something like this:“Cannot change drive to software error correction mode, drive is still set in hardware error correction mode.”
Anyway, this doesn’t affect SD2 backups - because CloneCD will replace unreadable sector with another made up unreadable sector - you can see these by using a hex editor on the CD image. The unreadable sectors are filled with hex values 55h. SD2 can read them so it doesn’t know they are different.
If you really want to know the difference here it is:
The difference is that if your drive supports setting to software error correction and the none setting the drive can actually read corrupted sectors with C2 or EDC/ECC errors and therefore be able to copy those corrupted sectors. Currently it seems only Plextor drives can support this.