Anti-bot will disable aiming modules attacking bots. That's all. Nothing more, nothing else.
Anti-bot's hide bots option on the other hand will entirely remove the but from your client.
You will not get banned by watchdog's bot entity if you have AntiBot (and hide bots) enabled. It's absolutely impossible to hit the bot because the bot is completely removed client-sided, there's just no way to hit something that doesn't exist for you.
That being said, you can still be banned by watchdog if you start flying around like crazy, though I'm pretty sure Vape has a fly 'bypass' for hypixel.