The 'collision detect' system is one of my pet hates on my 2020 MK7.5 GTI. I fully support anything to do with safety, but when it catches you unawares it is really disconcerting, not too mention dangerous.
As noted above, the radar on the MK7.5 is set behind the VW badge on the grill (not below the number plate like the Mk7). I have set mine to the least most sensitive setting, but even then it has been known to trigger without warning.
I have learned how to handle it now, it gives a warning if you think you are not in control of the vehicle and then jabs on the brakes pretty hard if no steering, braking or acceleration inputs are detected.
I tend to drive smoothly and not brake hard or late, I have had the warning and brakes go on if I am coasting towards traffic lights for example, and the car believes I am not in control, so now I will just dab the brake very briefly just to 'let the car know'!
I had an alert the other day when I think a car in the opposite direction was probably nearer to the white line than it should have been and it buzzed at me then, but did not brake thankfully.
On another occasion this summer, I was convinced I had backed into a tree! Gently reversing the car suddenly it jolted to an abrupt halt. Got out the car expecting to see damage, mercifully there was nothing! All it was, a small tree to the side, the car had detected presence of an object (like a person) and slammed on the brakes for me. Really shook me up!
I share your frustration with this system, but it should never trigger, as long as the car is receiving those 3 inputs of steering, braking or acceleration.