Dynamic Cruise Control Question

Hello, I have a 2020 Prius that was recently in the shop for over a week due to a fender bender. I have it back now and feel like I'm going crazy with the cruise control. I always have it set on the shortest distance between me and the car in front of me (like my picture A). I've already looked on YouTube videos to try and get my answer, but apparently most people keep it set to the longest distance (like my picture B). My question is, if I have it set to the shortest distance, and I'm coming up on a car that's WAY in front of me, should it show up in the distance on my cruise control display? Like my picture C? And then the car get closer until it matches Picture A? Or does it automatically show up as Picture A no matter how far it is but just keeps getting closer until it's at that actual distance? I feel like it used to show up in the distance, but it doesn't now so I'm second guessing myself. You can see in my last two photos, no matter if a car is right in front of me or way out ahead, it is still showing picture A which is right in front of me. Is this normal and I'm just not remembering correctly or is this an error?