Not sure what you are asking. Non-nil indent-tabs-mode means that Emacs can use TAB chars instead of a number of consecutive SPC chars. If the value is nil in a given buffer then indentation by Emacs (e.g. automatic indentation) uses only SPC chars. But even in that case there is nothing preventing you from inserting a TAB char (e.g., using C-q TAB).
What setq-default does determines only the default behavior. In any given buffer (e.g., in any given mode), the value can be different from the default (aka global) value. It is the buffer-local value that determines the behavior (as described in the previous paragraph).
"Conversion" of TAB chars to one or more consecutive SPC chars happens if indent-tabs-mode is nil and you hit DEL (the Backspace key) or you change the code in such a way that the appropriate indentation column changes. All that happens is that if a TAB char needs to be removed to meet the new indentation level then SPC chars replace it as needed. Existing TAB chars that do not need to be removed to get proper indentation are not removed.
(On a different but related subject, be aware that you can replace all existing TAB chars in a buffer by doing C-x h M-x untabify.)
shell-scriptsmode to override theindent-tabs-mode. Any further suggestions? – ITL Mar 26 '20 at 07:43