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The phrase 'formal settings' is correct and usable in written English.
You can use it to refer to any situation where people are dressed formally and/or expected to behave in a manner that is deemed appropriate. For example, "I find it difficult to relax in formal settings like weddings and high-level business meetings."
Exact(55)
A man who is at his most uncomfortable with formal addresses in formal settings was called on to give one that he knew would set the tone of his first term.
Certain rules of grammar and standard vocabulary are expected in formal settings like the workplace.
His style, using richly dressed figures in formal settings, deeply influenced later developments in Persian painting.
Having played around the world, in more so-called formal settings, these kinds of places create energy and good vibrations.
Mr. Lee said that in more formal settings, such as meetings, he usually addresses his mother as "Lucille".
In the most formal settings, he wears a dark Western suit and a red or blue tie.
Mr. Bush, who does not relish speeches in formal settings, has something of the same task at hand.
Much of the Baroque chamber repertory now performed in more formal settings was created under exactly those circumstances.
And you can have a face for Facebook and a face for more formal settings," McGurk adds.
Similar(2)
He said 80% of child labour in the country was in the kind of non-formal settings the ILO wanted to target.
So is the Pope using these extemporaneous chats with the press as opportunities to speak more candidly than he would in more-formal settings?
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com