You don't set OSR at all! If it is not configured it is "0". This is what you need to take advantage of deduplication and compression. So just to be very specific:
1) the recommendation is to NOT configure OSR at all, which means that it is set to 0.
2) yes, it applies to all CURRENT versions of vSAN, that includes 7.0 U3
3) this means that when OSR=0 that no capacity is reserved indeed, and you will need to monitor used/unused/provisioned to avoid a situation where you end up without unused capacity.