My understanding is as follows: yes means that there is the legal right to use something e.g. you have the right to walk by foot on a sidewalk.
designated means that there is a legal instrument (generally signage and/or possibly road marking depending on your state) that *specifically* gives you permission to use a given feature. For instance, a shared path is one which bicycles and pedestrians can legally use together, and this is designated by a shared path sign (AU:R8-2 https://en.m.wikipedia.org/wiki/File%3AAustralia_R8-2.svg?wprov=sfla1). In this case it would be appropriate for a shared pathway to have both foot and bicycle be set to designated in my opinion. Theoretically you could add foot=yes to every sidewalk and/or footway however my understanding is this key is implied, and will also throw and error in osmose.
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