Just use the v3 driver, or at least the Xerox v4 and not the Microsoft one in your screenshot.
The only real reason to switch to a v4 is if you are on a tablet and running the tablet UI with full screen "metro" apps (Now called "Modern UI")
I recently upgraded our print server to Windows 2012R2 and as such moved all our printers to v4 print drivers on the server (where available). Two of our printers are Xerox WorkCentre 5875 which are using the Xerox WorkCentre 5875 V4 PCL6 print driver. I have the installable Options set up correctly (I think)
See that it clearly shows that a Hole Puncher is installed. However on user's computers there is no option to select hol punching.
Has anyone else run in to this issue? I would rather not degrade back down to a Type 3 driver if I don't have to