So here's how it goes :
1) Drag a music track from media pool to the timeline
2) Switch to fairlight tab
3) Right click on the audio clip and select "Analyze Audio Levels"
3a) In the "Loudness standard", pick BS.1770-4 and press analyze
3b) After some time, the result is displayed and here I get 0.8 dBFS True Peak, -5.9 LUFS loudness.
3c) Close the "analyze" pop-up
4) Right click on the audio clip again and select "Normalize Audio Levels"
4a) Select "BS.1770-4" as Normalization mode, then in the new inputs, set:
-3.0 dBTP as "Target Level" (default value is -2)
-14 LKFS as "Target Loudness" (default value is -23).
4b) Click "Normalize".
4c) After some time normalization is done, and I can see the Clip volume (in the inspector) has been adjusted to -17.1
5) Repeat the "Analyze Audio Levels" (step 3 above)
5a) Results are now -16.3 dBFS true peak and -23 LUFS loudness.
Repeating step 4 with any config value doesn't change anything, it always gets normalized to the default -23 LUFS and ignores the config.
Running 17.1.1 on linux.
"Screenshot" of the popup :

Resolve Studio - Ryzen 5800X3D - AMD RX6600 / NVidia RTX 4070 (switching between the 2) - Linux