Am I using "Bridge Edge Tools" incorrectly?

I might be using the but I'd like to check with you all before reporting it as a bug.

The issue is that I want to use the "Bridge Edge Tool" for pieces that slightly overlap. To clarify, I've provided an example to illustrate my point. In this example, I have three different setups:

1. No overlapping, with a distance of about 3 units apart.
2. No overlapping, but at the same position.
3. Overlapping with 3 units.

As you can see, the nice "curvature" works well when the pieces are apart, but it behaves strangely when they get closer. What I'm trying to achieve is a smooth "S" curve in setup number 3 that bridges the objects together.