Noob question: Hi Beams and light settings on Emas5

I got an Emas5 recently and am still trying to get the hang of it. I had the lights set to Auto because I thought it's supposed to adjust the brightness automatically based on your surroundings.

This was around 3pm and apparently my car had the big lights on. There was this dude who was pissed off and got off his car to glare at me and my slow ass took a while to understand what it was about. (If you are that dude, I'm sorry I didn't mean to have the big lights on).

My (very noob) questions are:

1. Is the Auto setting not supposed to adjust the lights based on what's appropriate?

2. Is the second setting (big light—twist the signal stick twice) actually the high beam? On my old myvi I can barely see even with the big lights on, so I thought everyone is using the big lights.

3. What are the etiquettes around the big lights? Are you supposed to use them at the parking lots or not? Only use them when driving at night and no one is in front of you?