https://www.waze.com/forum/viewtopic.ph ... ent+radius was created to help folks understand the popups.
However, your experience doesn't match with those "rules" Waze provided to us, so it sounds buggy. I'm not surprised, honestly. They keep messing with things and the app doesn't operate as expected in so many ways. It's full of feature bugs like this. Basically, the server is ignoring your settings and it doesn't matter what you select.