I don't know if there's an option for posts, but for comments I think this is what you're looking for:
Doesn't seem to have an effect on my end.
EDIT: Seems to only works on accounts on the same instance as me.
EDIT 2: nevermind, am dumb. It won't show an avatar if the user doesn't have one ๐คก
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Thanks man. I must be real stupid to have missed that. I would like the option to have them show on the posts as well though.
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