"Smart with Categories" behavior

Can you confirm that the "Smart with Categories" option functions the way I think it should function, at least for the first page?

The way I think it should is, it should be divided up into 2 sections:
1. Favorite Apps, which is essentially a static list of all apps you choose to favorite (although you can favorite and unfavorite apps at any time)
2. Recent Apps, which is a dynamic list that changes according to the last app that you open. My understanding of this is that functions like a queue, so the most recent app, pushes down the prior most recent app, and so on and so forth.

Number 1 works fine for me. However, number 2 does not appear to be happening (at least as I think it should). The list appears to remain static, even displaying apps that I've hardly ever used or rarely use. So I think my understanding of it must be wrong. This is true, on Windows 7 and Windows 10, using version 12.2 of the platform. This also seems to have been the case for a number of version, although I can't explicitly state how far back this goes (perhaps because it has never worked the way I thought it did).

I don't know if there's a way for me to get an app count but I do have a fair few number of apps and I've included some portable apps that are not part of the PortableApps stable (usually some stand-alone executables).