There is a bios setting where you can optimize for a "mostly plugged in" battery cycle. Not that we should have to use this setting to prevent bulging but it is there.
It isn't about a setting or charging policy. The batteries are absolute crap and should never do that.
From experience, it is usually only on specific battery models.
Every single one of the Precision 3510 laptops we had had the batteries bulge. A few newer Latitude models as well but not many of them.
I would 100% expect the flat-style batteries that are being used now to start bulging at some point no matter the laptop mfg. They are just a horrid design.
Per Dell, if the laptop is still under warranty and the battery is bulging, they will replace the battery even if the battery itself is out of warranty.