https://en.bitcoin.it/wiki/BIP_0037 states that "version" P2P message is extended by one byte. bitcoind's code appears to read this,
if (!vRecv.empty())
vRecv >> pfrom->fRelayTxes; // set to true after we get the first fi
lter* message
else
pfrom->fRelayTxes = true;
but does not appear to send the fRelayTxes byte:
PushMessage("version", PROTOCOL_VERSION, nLocalServices, nTime, addrYou, addrMe,
nLocalHostNonce, FormatSubVersion(CLIENT_NAME, CLIENT_VERSION, std::vector<string>()), nBestHeight);