>> a bit jerky in traffic
Is it ok? They should be imperceptibly smooth. There were a high number of "mechatronic unit" failures from around this time (2007) and that can manifest itself as jerky changes at the beginning.
Might be worth having the dealer look at the car anyway, a procedure they'll do as a matter of course is the DSG adaptation procedure. This is just plugging the car into the dealer VAS tool (VCDS will do it too) and the gearbox re-learns correct change pressures for the clutch plates (to account for wear etc). It's done at the DSG oil change time also.
>> is it actually applying the brakes
It does work via all 4 brakes, It doesn't apply any braking pressure though, it uses the pressure you applied and stops the immediate release of the pressure when you release the brake pedal. Pressure is released progressively over the next ~2 seconds.
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Volkswagen Passat - VW DSG - Auto Hold -.. new
Volkswagen Passat - VW DSG - Auto Hold .. new
