The correct answer is The velocity chart excludes estimates from subtasks and uses only parent issue estimates to compute the team velocity.

This reflects the default behavior of the Jira Software Scrum velocity chart when an Agile template is used and settings remain unchanged. The report aggregates estimates at the parent issue level only and it does not add estimates placed on subtasks to the sprint totals.

If a team puts estimate values on subtasks those values will not contribute to the displayed team velocity unless the estimates are moved up to the parent issues or a custom roll up process is implemented. In practice teams either keep story points on parent issues or use automation or reporting tools to combine subtask estimates into parent totals.

The velocity chart will include subtasks in its calculation when an "Include child issues" setting is enabled at the report level is incorrect because Jira does not provide a report level "Include child issues" toggle in the default velocity report. The built in report reads estimates from sprint issues without that report level switch.

The velocity chart includes subtasks only when the parent issue has an "Include child issues" toggle turned on is incorrect because there is no per parent issue toggle in the standard Scrum velocity chart that causes subtask estimates to be counted. The chart relies on parent issue estimates by default.

The velocity chart always counts estimates from subtasks together with parent issue estimates when computing team velocity is incorrect because the chart does not automatically combine subtask estimates with parent estimates. Subtask estimates are ignored for the built in velocity calculation unless you change how estimates are recorded or create a custom report.

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