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I have mine set to a minute, which catches the essential arrival and departure activity around car fairly well.

If the other vehicle was there when you arrived and you were parked for more than hour then yes it might have lead to trickier to recover video.
(Can be done by raw video data recovery across storage medium to get at Recent Clips files)
 
I distinctly remember this was advertised as a new feature in the 22/23 holiday update though...


I don't have this feature in my US MYLR (on 2024.2.7) and that Not A Tesla App article states that this feature is limited to specific regions (parts of Europe as of November 2022 when the article was written). I'm jealous, I wish I could adjust this. Seems strange that it's not worldwide.