Unfortunately I have tested every permutation and combination of settings and eventually during the night the “AoD” eventually always turns off. The AoD turns off under certain circumstances and behaves exactly as Apple Support describes it:
”The display automatically turns off when iPhone is face down or obstructed from view, not near a paired Apple Watch, when a CarPlay session begins, while Continuity Camera is in use, while
Low Power Mode is on, while
Sleep Focus is on, or at your usual bedtime.”
Seems to me it is not a “bug” but WAD. As I have said several times now, it would be easy for Apple to fix with the appropriate setting that would actually force it to stay on.
Aren't you mixing up "always on display" with "StandBy"? As I understand it, they are intended to be 2 different things.
What you quote is in the "always on display" Apple User Guide, here:
https://support.apple.com/en-gb/guide/iphone/iph7117338a8/17.0/ios/17.0#iph0882c9990.
StandBy is a separate section of the User Guide, found here:
Display your favorite photos, clock, Live Activities, and more while your iPhone is charging.
support.apple.com
Also, it says this under StandBy:
"When Night Mode is on for StandBy, the screen adapts to low ambient light at night
and displays in a red tint so that it’s not intrusive while you’re sleeping."
And also this: With the Always On display (on iPhone 14 Pro, iPhone 14 Pro Max, iPhone 15 Pro, and iPhone 15 Pro Max),
StandBy stays on to show useful information.
Both of those statements imply that the screen will stay on, particularly in night mode, even when sleeping.
Also, as I pointed out, "Stand by" has its own toggle for "always on" -- which is NOT "always on display", which is named differently and located in a different settings section.
So what I think happened here is, there are unanticipated software conflicts going on between "Always On" under StandBy vs. "Always on Display", where the latter setting is located under Display & Brightness.
And how "night mode" interacts may be a separate conflict.
This would explain the inconsistent behavior.