At some point coreutils added -S in order to support the behavior of BSD and MacOS. I would guess that whatever implementation you're using then added -S as a noop in order to (at long last) permit the portable usage of multi-argument shebang lines. Until both of those things happened there was no portable way to pass multiple arguments in a shebang. You used to have to do really stupid things (ex https://unix.stackexchange.com/a/399698).
https://www.gnu.org/software/coreutils/manual/html_node/env-...