The switch physically does move through the sidelight position but there seems to be a software tweak that stops the lights changing for a few seconds.
EG
1.on Auto (in the dark with the lights on), switch to sidelights, there is a couple of seconds delay before they change from full beam to sidelights.
2. on Auto (in the dark with the lights on), switch to full beam (so I can have the foglights on say), switch travels through the sidelight setting to the full headlight setting, but because the system waits a couple of seconds before making its mind up, the headlights just stay on full without dipping as they go through the sidelight setting on the switch...
If that makes sense!