The File types has nothing to do with permissions to upload. It is simply the list of standard MIME types so that your browser and Moodle then know what type of file it is (text, html, image, video, etc.) The official standard list is here:
https://www.iana.org/assignments/media-types/media-types.xhtml.
This setting in Moodle is primarily useful if you have some file type that may not be listed already, for example, file types from content companies or other education specific file types not in general use, so that you can then configure Moodle how to handle it.
Removing a file type from the list does not prevent its being uploaded, it only makes it harder for the browser and Moodle to know the file type and handle it appropriately by invoking the proper type of viewer or player.
To control upload in Moodle you need to find the settings where it is being uploaded to restrict those, if you can. The one place you can do this currently is in Assignment for student submissions. A site-wide ability to handle this has been proposed but not completed, see Tracker
MDL-44392 and this as well
MDL-54716 for control of all student uploads.
The only way to restrict file type uploads globally in all of Moodle that I know if is to configure your web server and/or PHP to reject certain file types.