Hi. Safe following distance is the distance required to safely stop at whatever speed you are going. At a typical speed of 90km/hr (that's usually when this "feature" gets engaged - slowing me to 10km/hr under the limit because that's what someone in front of me is doing), the safe stopping distance is around 80-90 meters (perception+braking in good conditions). The shortest follow distance setting I seemed able to find was around double this distance.
tl;dr: I do not find that the adaptive cruise control is engaged at a safe following distance. Indeed, I think it makes me less safe as a driver, because it slows me down arbitrarily without any visual or auditory notification.