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We need to clarify your question. I don't think you are talking about the "create and maintain hidden players" that you can choose only once, when creating a game, in which the game will create hidden players in countries that do not have leagues and who wait to be discovered by scouts that you send for this task.
If by "hidden player attributes is selected" you mean that you have turned off all the player rating scales, then scouting would appear to be superfluous, as scouts will still report their findings (I think they still see the actual ratings in player profiles) but without any numbers for you to make a judgment by. See the first screen below for an example.
However, a scout will still report on what he sees as the top players in an organization, and the top prospects of an amateur draft. See the second screen below (both of these messages were generated after I turned off player ratings in my game).
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