Are you talking about this screen in the Zwift app? If yes, you’re starting down the wrong path. This flow is for Zwifters using a wheel-on classic trainer.
Does wheel size setting matter in the Wahoo app? I think there’s other settings like for pedal-based powermeters where setting crankarm length definitely does matter.
I imagine it would be used to scale the resistance you feel on the trainer, so that the resistance feels the same as if you were riding that bike outside.
It would likely only matter if you were using the wahoo app to control the resistance, and only for the sim mode.
If the resistance is being controlled by zwift I doubt it would impact anything.