Ambiguous name search not working properly

The ambiguous name search does not appear to be working properly for us. We have several users named Cherie XXXXX in the public directory. If I type in Cherie, , it pulls up the first person in the public directory and does not give me an ambigous name search box.

Now, if I start to type in JOHNS for Johnson and then F9, I get the ambiguous name box.

Our settings are set to check “exhaustively” after first match, but it doesn’t seem to make a difference. We are also checking after each character vs. the delimimiter option.

Ideas?? Thanks.