I would personally use the recog. light setting during day approaches and takeoffs. Also when operating in high traffic areas such as known training areas, VFR corridors etc. It's really pilot discretion. See and be seen !
The only Air reg at least in Canada pertains to the use of landing lights when carrying pax at night, as well as the need for nav lights and some form of anti-collision light for night operations. As an aside in Canada, I don't believe that the recog. light would be an acceptable anti-collision light as it is not viewable from 360deg as they are just aimed forward.
Hope that helps.
As to what Capt. Claret is referring to I know those lights are usually referred to as logo lights... Recognition lights are seemingly airplane specific. The PC12 has lights installed in the flap fairings also referred to as recog. lights but these are just the steady variety like an extra set of landing lights.
Wig-wag aux landing lights - YouTube For Capt Claret
Op is referring to this type of strobe.