AW3225QF, a bit confused on using Alienware HDR?

Out of both these pictures, which one is the right use of HDR because it's kind of confusing.

When Smart HDR is disabled in my monitor settings, it also disabled the HDR in the Windows settings. But if HDR is disabled, then why I'm I able to change between HDR types in my monitor settings? The screen goes black in between switching HDR types so it's actually changing:



When Smart HDR is on in my monitor settings, it also turns on the HDR in the Windows settings. However, I can't switch in between HDR types in my monitor settings, does this mean it's not using HDR Peak 1000 that I set it to and using something else?