You don't have to toggle from manual to automatic to use the features you are referring to. You can change the torpedo speed, choose magnetic or impact, set a running depth and do a salvo/set a spread ALL on just the automatic setting. Yes, SH3 will use the settings you changed and do everything else for you automatically.
The Manual toggle is for when you want to start doing Angle on Bow, Range, Bearing and Target Speed yourself.
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