What I found with the Garrett GTA 1000, was that when you had notches taken out up to 2.5, you still could sometimes get an audible target response from steel, even with the indication on the display showing the first notch.
To rectify this problem, just take out the last notch as well, (24th notch), and this should solve this problem.
I believe that sometimes a wrap around occurs through the backdoor of the microprocessor and actually audibly breaks through the 24th notch.
The 24th notch curser will not show when this happens.
As the GTA 500 has the same 24 notch system as the 1000, I think that this may be occuring.
I did an article about this many years ago.
Give this a shot and hopefully this will help out.
Regards,
Phil