@Anonymous
I know this is an old one but I just thought dropping in a note won’t harm
The on the go Temp Dimension (A) which you see while drawing the wall are different than Temporary Dimensions (B) which are set after the walls are drawn. What you set in the Temp Dimension Settings are meant for the final Temporary Dimensions (B) which you get after you finish the command and not the ones that show while executing the command (the ones you are referring to in order to control the 500x300 as you draw it)
Temporary Dimensions (A) when wall command is envoked
This always measure Center to Center irrespective what you check in the Settings or Location Line. As a matter of fact Location Line option has nothing to do with Temp Dimensions.The only difference between a drawing a wall using single line/segment and a rectangle/polygon is that when a wall is drawn using a Line, isolated/not connected to any other identified reference (another wall), the temp dimension looks like as if it is measuring end point to end point. But it is not. If you zoom in and look closely you will see a magenta cross reference of the Temp Dimension. Therefore it appears that it works but as a matter of fact it doesn't.

In a Rectangle it is easy to see it measuring from the center of the wall and not the faces due to the temp dims observed at the lateral walls.

The only exception to the above is the full circle (closed ends). Temp Dimension measures in this case center to radius (with respect to either outer or inner face – depending on how you flip it using the space bar not the Location Line option) – Polygons are treated the same as they are inscribed in a circle which you can see while drawing the wall.
Temporary Dimensions (B) set after wall command is completed
This measure from a reference point to another reference (as long as such reference can be identified). Those settings are only driven by the settings defined in Manage>Temp Dimensions dialog. And the Face option set therein is not specific to Outer Face or Inner Face.