Yes they replaced it for free. Mine came from factory this way too.
I had thought that pressing right should increase the number, but it actually pushes you closer to the car in front of you, hence lowering the number, and 2 is the lowest (closest). So it seems you and I could push it right, such that it was stuck at the rightmost number, but could not push it left, to increase the follow distance number.
Just tried to adjust following distance on my model 3 and found scrolling left made no change but right showed 2? Is this user error or software?
My car is on 2022.12.3.20. Worked ok on previous software.
Also it seems it may be safer to also allow following distance adjustments when the car is stopped like it was last year.
I am still amazed that most of this stuff works most of the time.