Good evening!
Am I right in my interpretation of the manual that if you drive with the lights turned on, rather than in auto, the auto high beam does not function?
If you turn the lights on manually then the auto-high beam indicator (headlamp symbol with an "A" in it) doesn't come on so I'd say the function is disabled. I'm not sure if it will come on if you then enable it in the normal way by lifting the stalk towards you for a few seconds. But the only circumstances I'd want to switch the lights on manually would be in poor visibility, and I'm quite happy with the lack of the auto function in those conditions, you really wouldn't want the lights to suddenly switch to high beam in fog.
Just in passing, I saw a Mk3 a couple of days ago in fog where the driver had decided to turn his lights on manually but had only turned the switch one click so he was driving on sidelights ... which were MUCH dimmer than the DRLs that he had inadvertently turned off! At least that would have turned his taillights on, but from the front he was practically invisible.