I was skeptical about this thread, so I've been looking for evidence of odd TACC-related behavior. I hadn't seen anything odd. Until today. (Note: I've been driving the S since Dec. 2012, and I have over 70,000 miles driving the Model S. I have probably logged an average of about 20 miles a day on autopilot since it came out. So this isn't just a misinterpretation of something).
I was in the center lane of a three lane urban/suburban road with no traffic directly ahead of me and Autopilot on. About a quarter mile ahead, traffic was stopped at a red light. Since TACC brakes a little harder and later than I'd like, I disengaged it and started regenning. When I got to the point that the stationary car ahead of me (waiting at the light) was about 100' ahead, I reengaged autopilot (at this point I was probably going about 25mph). On the dash display, the stopped car appeared "fading in" from a distance in front of me in my lane, as expected.
My car gently slowed and stopped with appropriate spacing behind the car in front--so all good here. But I noticed after sitting still for a few seconds, that the brakes very slightly released and the car inched forward (I had no feet on any pedals at the time--autopilot still engaged). After stopping for a few more seconds, the car inched forward a bit more.
Throughout this time, the car was depicted on the dash in front of me.
Finally, after a few more seconds, the brakes released and I started accelerating toward the car in front! The acceleration was slow--exactly like you would get with TACC engaged and stopped traffic starting to move in front of you again. So if you're paying attention, you can stop the car without a collision risk. But if you've closed your eyes or are not paying attention, I can see how you might run into the car in front of you at about 10mph.
Again--throughout this time, the car in front of me was depicted on the dash display. It seems like the radar got a little confused. The car in front had been stationary, and TACC seemed to get a lock on it, but that lock didn't seem to hold.
So, word of advice: don't space out completely when sitting behind stopped traffic with TACC engaged...particularly if the car in front of you has been completely stopped since TACC first acquired it.