Mesh Controls doesn't work as expected

Dear All,

Perhaps you can help me with Mesh Controls. From some reason it doesn't work as indicated in the documentation. I tried to ask a product engineer about this but I wait for over a week for an answer but did not receive anything. Perhaps someone in this forum can help.

In the documentation it is said:

" When generating the mesh, the following behaviors apply: Feature mesh controls are applied first. Model and local mesh controls are applied second,"

However in practice this is not what happens and I fail to understand why
Please see the attached file.

Thanks