Note that this is an OR option, and that mover will try and move anything off the array and onto the cache so it would not make sense to do this.
nothing wrong with having appdata as Use Cache=only once you have ensured it is all off the main array. The reason that many people use the Prefer option is that allows for overflow to the array of the cache gets full, and auto-move back if space later becomes available. If using the Prefer option then make sure you have a sensible value for the Minimum Free Space setting on the cache so Unraid knows when to start overflowing to the array..
There is nothing to stop you having appdata purely on the array, but most people do not want this as you normally get much better performance if it is on a pool/cache.