The camera will zoom in when it hits collision like a wall or ceiling. If it didn't the camera would go through those and well it would not be pretty and would be far more annoying than the camera zooming in to compensate.

Also there are two different camera settings, the default and legacy. The default tends to restrict and tether the camera and its behavior to player movement, most noticeably movement directions being relative to the camera and where it is looking and facing. Legacy decouples that dependency somewhat and may be closer to what you are looking for.
I recommend messing around and playing with each camera type to see which suites you the best, for example I prefer the default because I like to control movement and the camera with my mouse as I find it more intuitive and more immersive.

The camera can definitely get wonky in tight spaces like when you get backed into a wall, but normally in those instances I just swing my camera around by holding the left mouse button down and moving the mouse (default camera) so that I am then looking head on at my character and the camera isn't squished between my character and the wall.