Does disabling the backup of Lightview files remove the hidden backup directory?
No. If a backup was created at any point it will not be deleted by unchecking the backup option. To delete the backup folder use an FTP program, or similar. To prevent the backup folder from being created in the first place, disable backups from the settings page immediately after activating the plugin. This setting will be remembered for subsequent activations and deactivations, as well as during future updates to the plugin. It is recommended that you allow the plugin to make a backup to ensure updates are successful with minimal user intervention.