set target to [Enemy] on PS4

When I set target to [Enemy] on PS4, all green name friendly NPCs of FATEs still could be targeted, is it working as intended?

Thanks.

I mean [L1+O] changing target cycle to [ENEMY] , which is the one of [ALL][NPC][FRIEND][ENEMY].

Adding information

Problem:
default target filters not working in some situations

example1:
with default target filtering, i.e. [ENEMY],
you cannot target another PC players as expected, however, you can target a friendly NPC unexpectedly.

example2:
party member's pet usually could not be targeted even set the target filter to [ALL],
I found in most cases, it could be targeted by changing to first person view and facing to that pet.