it was explained that only CaptureOne should be used as RAW developer
That "should" seems arbitrary to me. There are lots of very good raw converters. Choose one that you like, and don't get hung up on "shoulds."
Beyond that, I would discourage recipes of settings, whether in the raw converter or in Photoshop. The default settings you listed are fine for starters, but use your eyes and adapt those settings to the specific image you're working with. For instance, sharpening radius and amount can vary considerably, depending on image details; same for noise reduction settings. What is appropriate for one image might be inappropriate for another.
How much and what kind of editing you do in the raw converter vs. Photoshop also depends on specifics. I use Adobe Camera Raw because it allows me to open the image in Photoshop as a smart object, which preserves all the raw data inside the smart object. That allows you to re-open the image in ACR to tweak those edits. It also allows you to create a "New Smart Object via Copy" to open in ACR and edit independently of the original smart object.
This is an extremely useful capability for selectively editing various areas within an image. For instance you could create a new smart object, open it in Camera Raw, edit it to open shadows details, return to PS, put a black mask on that layer, and then paint in just those shadow details.
I've never used CaptureOne, but my understanding is that it doesn't have this sort of compatibility with Photoshop. If that's the case, I would avoid C1. ACR is designed to work with PS in ways that make the combination more powerful than either working alone.
