If we're talking about a movie in a language I don't know, then either is fine so long as if they are hard-coded, then they're cleanly burned in. If I don't speak the language, I don't see myself ever not using captioning.
All of our movies are hard-coded. I feel there would be a security risk to having the subtitle file separate since some of what we show already is hosted on many file lockers (without subtitles). If a nefarious user got the file, he could theoretically match it up with a file locker upload for instant illicit captioning.
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