It turned out that not all of the placement options are in that doc, you can still set windowTarget and the others that work with 1.1 tools
As a test I tried this:
$ curl -H \"Authorization: Bearer {api key}\" \
-X PUT "https://{instance}.instructure.com/api/v1/accounts/1/external_tools/{tool_id}" \
-F 'course_navigation[windowTarget]=_blank' | jq .'course_navigation'
// returns
{
"enabled": true,
"default": "enabled",
"placement": "course_navigation",
"message_type": "LtiResourceLinkRequest",
"windowTarget": "_blank",
}
And the URL subsequently had ?display=borderless appended to it (and more importantly, it opened in a new tab when clicked)
Unfortunately if the tool is already installed, this is how you have to update it (1.1 or 1.3) as far as I know, but when installing the LTI key you should be able to add windowTarget to the JSON config under extensions.settings.placements i.e.
"placements":[
{
"text":"Course Navigation Placement",
"enabled":true,
"windowTarget": "_blank",
// etc.
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