"Use 203 Nits reference for Rec.2100 HDR" in Resolve v17.4.2

Has anyone else noticed unexpected behavior by the "Use 203 Nits reference for Rec.2100 HDR" option in Resolve Color Management in Resolve v17.4.2?
I'm getting unexpected results. According to the Resolve manual, what that option should do is automatically set the peak highlight of correctly tagged SDR input clips to 203 nits. But instead what it appears to be doing is like a gamma operation that moves 100nits to 203 nits on every clip in the timeline regardless of the input color space of the clips. It is even doing it to raw source media. Is anyone else seeing the same issue? Is this a bug, or have I completely misunderstood what's written in the manual?
I'm getting unexpected results. According to the Resolve manual, what that option should do is automatically set the peak highlight of correctly tagged SDR input clips to 203 nits. But instead what it appears to be doing is like a gamma operation that moves 100nits to 203 nits on every clip in the timeline regardless of the input color space of the clips. It is even doing it to raw source media. Is anyone else seeing the same issue? Is this a bug, or have I completely misunderstood what's written in the manual?