The Maximum distance setting of the Settings (Custom) component

Hello. The Max Distance setting of the Settings (Custom) component should force polygons to divide further until the distance from a polygon edge midpoint to the underlying surface is smaller than this value but for some reason, it doesn’t work. I wonder what does hinder and how can I force this option to work? (31.7 KB)

I’ve noticed that this issue appears primarily near creases but how to troubleshoot it? Does anyone maybe have experience?