Thanks for this post OP. I will have to check myself as to not get complacent with this system. I am taking delivery of my Model 3 in a few days and one of the primary reasons I have wanted a Tesla for so long is to have autopilot help my hour plus commute to and from work in mostly heavy Chicago traffic. Cars cut in all the time so this is really good to know ahead of time.
Hopefully over the next year or two issues like this one will be improved so that autopilot is better in situations like this.
Bingo! Complacency is exactly the issue. At the end of the day, even a slightly unreliable autopilot makes a long commute infinitely more tolerable just because you won't have to white knuckle it the entire way(my LA to Orange County commute is 2 1/2 hours on some days, one way). Just remember to always keep your eyes on the road and foot near the brake pedal just in case. If I had been paying attention, my accident would have been easily averted.