I notice that if I load any kinds grenades on a dispenser it doesn't trigger/ignite to explode once it takes off. It just spit it out. This would be useful for traps and ambushes.

Can you confirm if this issue is still present on the latest 1.18.2 build?

This is something that needs to be implemented by us (not a bug).

@juanmuscaria would you look to add a server-side configuration for this?