How to edit the config:

The Bagginses config is located in /config/bagginses and is called bagginses.cfg

The config:

Here is what the default config looks like (Correct as of 2.4.2):

    # Configuration file
    
    ##########################################################################################################
    # descriptions
    #--------------------------------------------------------------------------------------------------------#
    # Input here any custom descriptions for an item. 
    # These will be shown when the player shifts while looking at an item.
    ##########################################################################################################
    
    descriptions {
        S:"Custom description for black bag"=
        S:"Custom description for blue bag"=
        S:"Custom description for brown bag"=
        S:"Custom description for cyan bag"=
        S:"Custom description for ender bag"=
        S:"Custom description for gray bag"=
        S:"Custom description for green bag"=
        S:"Custom description for lightBlue bag"=
        S:"Custom description for lime bag"=
        S:"Custom description for magenta bag"=
        S:"Custom description for orange bag"=
        S:"Custom description for pink bag"=
        S:"Custom description for purple bag"=
        S:"Custom description for red bag"=
        S:"Custom description for silver bag"=
        S:"Custom description for void bag"=
        S:"Custom description for white bag"=
        S:"Custom description for yellow bag"=
    }
    
    
    ##########################################################################################################
    # general
    #--------------------------------------------------------------------------------------------------------#
    # Input here all your whitelists per bag. 
    # If empty, bag won't be added to the world.
    # Use modid:* to whitelist the whole mod.
    # For example:
    # minecraft:wool/2 will add Magenta wool to the whitelist. 
    # minecraft:wool will add every wool type. 
    # minecraft:wool/0+1+2 will add damage value 0,1 and 2.
    # Add multiple items by using a comma between items.
    ##########################################################################################################
    
    general {
        S:"Whitelist Items/Blocks for black bag"=minecraft:wool
        S:"Whitelist Items/Blocks for blue bag"=minecraft:bow
        S:"Whitelist Items/Blocks for brown bag"=
        S:"Whitelist Items/Blocks for cyan bag"=
        S:"Whitelist Items/Blocks for gray bag"=
        S:"Whitelist Items/Blocks for green bag"=
        S:"Whitelist Items/Blocks for lightBlue bag"=
        S:"Whitelist Items/Blocks for lime bag"=
        S:"Whitelist Items/Blocks for magenta bag"=
        S:"Whitelist Items/Blocks for orange bag"=
        S:"Whitelist Items/Blocks for pink bag"=
        S:"Whitelist Items/Blocks for purple bag"=
        S:"Whitelist Items/Blocks for red bag"=
        S:"Whitelist Items/Blocks for silver bag"=
        S:"Whitelist Items/Blocks for white bag"=
        S:"Whitelist Items/Blocks for yellow bag"=
    }
    
    
    whitelist {
        # If you want to blacklist items instead of whitelist, change this config to false
        B:whitelist=true
    }

Anything in the config can be changed and customized to make you happy. The comments should explain everything you need.

But I want to enable all the bags:

Fine. Don't worry about reading the config or anything. Just change B:whitelist=true to B:whitelist=false