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Getting cutoff at low speeds - AP2

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I've been driving with TACC and autosteer quite a bit in busy LA traffic. I find that when someone cuts in at low speed the car doesn't see it coming. Every time I have to take control or the car will rear end/ clip the car cutting in. I have my distance set to 5. But even with 8.1 the car doesn't "see" or post the car in adjacent lane on the screen (not saying it needs to but it's not responding to the car).
 
I have the same problem with AP1. In Washington DC traffic on 395 and 66 if I tighten up to 1 I still have challenges with cars coming in and I end up a lot closer than I am comfortable with. If I back off it seems to just invite more people to cut and I end up rubber-banding my follow distance.

Sorry to hear that AP2 hasn't managed to solve this problem yet.
 
Was about to say to first reply... this is LA, as long as there is enough space for a nose you can merge. ;)

I'm in LA and I've noticed the same thing. It doesn't require much, they really just need to detect an oncoming merge and slow a little earlier. Otherwise it is very jerky. Hopefully soon!