Our dean's office recommends that we answer yes to the first, no to the second.
Rather than telling you to jump over the bridge. Let's use a hypothetical situation.
For argument's sake, you scored a 216 on Step 1, and put down NO for question 2.
You take Step 2 in October and score a 204.
What do you do?
Using the logic of not releasing the score than you must assume you would not release the 204 until after the rank order list has been released by the program.
However, during the Rank Order List meeting in February the committee will wonder about your Step 2 score (especially since you only scored a 216). One committee member will bring up the point if this person did not take Step 2 with a Step 1 of 216 than it was a reflection of poor judgment. Furthermore, if you are applying for a clinical career such as medicine, psych, peds, surgery, ob/gyn, or family medicine they consider Step 2 as being more important than Step 1. There is a reason Step 2 is known as Clinical Knowledge. And you decided not to take it or you decided not to release it. What does that say about how serious you are about residency applications?
In this condition, the committee has only one choice, they will assume that you scored much worse on Step 2 than Step 1. Thus, they will rank you with the assumption your Step 2 was below 200 and that you might have been trying to hide it.
If you are not going to release your score it is because you lack confidence in yourself and believe it might hurt your application. By NOT releasing your transcript committee members will assume the worst and rank you accordingly.
You lose by not releasing and you lose by releasing your score if you have a 204. Why make it worse by trying to hide it?
With all that said, I see one exception. If someone scores above a 240 on Step 1 and decides not to release the score. The programs will not wonder about your Step 2 because they know that you have nothing to prove. Thus, you can take Step 2 in October and not release that score until after the Rank order list (I personally would not even take Step 2 until February). On the other hand, anyone with a Step 2 score below 220 the programs will want a Step 2 score from you. If you don't provide it, they will assume you are an idiot for not taking Step 2 or you scored much worse on Step 2 compared to Step 1.
What I am saying is that if you have a Step 1 score below 220, you are obligated to release your score anyway. Why put down no?