Yep, on the M3 we get the little squiggly lines in front when the car gets pulled in. Again, I don't use that as the main positioner for the car, but have noted that the reading was there and seemed roughly right (yea many inches).
I haven't looked at the distance reading that closely but have been mildly curious about how deep into the weeds Tesla has gone on this. Look at it this way: With binocular vision (for those of us blessed with working wetware, not all of us are), one can get a pretty good idea of how far away things are. If memory serves, human depth perception works only to 30' or so. Further out we do it the old-fashioned way, by estimating the angular size of known objects.
But while there are a couple of cameras up on the windshield, they're not very far apart from each other. Without a decent baseline, said cameras are going to have a difficult time working out actual distance. I guess it would work better if there was a foot between them; or, better yet, a pair of forward facing cameras, one in each upper corner of the windshield.
However, having said that, I have an iPhone and have had a decent Android phone. Both of those have a "measure" mode where one waves the camera back and forth at the world a bit; then, one clicks on the corner of some object (a rug, corner of a window, whatever) then moves the aim point of the camera at some other point. And the phone will give one the distance between the two clicked points! I've measured floor width, carpet x by y, size of the top of a table, etc., etc. this way.
Well, the iPhone/Android phones Have But One Lens and they're clearly doing distance measurements just fine. Probably using the angular distance and the size of the pixels or something. And if they can do it, there's probably no particular reason that a Tesla can do it, too. Especially when we're talking about, what, ten or fifteen feet or so, maximum.
My guess is that the camera is picking up the crank handle on the side of the snowblower, which is just about at bumper height, the closest thing to the car, and is probably visible to the camera, and giving the distance between the bumper and the handle. If I feel ambitious this weekend, I'll pull the car in, note the displayed distance, then go and get a tape measure and check it.
Fun.