Every single adaptive cruise control system I've seen allows the driver to set a follow distance that is far too short. For example, on my Subaru, 4 bars is really the minimum "comfortable, relaxing" amount. But if traffic starts to get a little heavy, 3 bars works a little better, but you do have to be more vigilant. If you are down to using 2 bars or a single bar, you had better be hyper vigilant. I can't imagine a safe way for the car to operate with those settings, unless perhaps they are useful for stop-and-go interstate traffic.

To make matters worse, every single car salesman I've encountered has the feeling that doing everything to the extreme is the best way to sell cars. Which means that is is totally, completely believable that the OP with his Golf had the salesman set it to a minimum follow distance and then not explain that they did this or how to change it!