No, they are confident that they can detect at least 10 seconds in advance if one of the many conditions required to operate the autopilot will be violated. Upcoming tunnel, construction, etc.
Right. And any accident falls into at least one of these three classes: Something they won't need to pay for (even via insurance premiums), something the software can avoid and lastly, most significantly, something for which the software can provide ten seconds' warning.
I don't find it remarkable that the software has many reasons to disengage. I find it remarkable that potential accidents >10s into the future are on the list of reasons, even in limited circumstances.
The first software I bought came with a warranty that covered nothing: It explicitly said that the software wasn't guaranteed to perform "any particular function". As I read that text, that vendor had the right to sell me three empty floppy disks. You've seen similar texts, right?
And here we have Mercedes guaranteeing considerable foresight in limited circumstances. No matter how limited the circumstances are, that's a giant leap.
I'd expand that to four classes of accidents. Four, something they /will/ need to pay for (both in money, as they're committing to, and in PR). Inevitably some accidents won't fall into your three "preferred" categories -- making a system like this successful is about managing the size of bucket four, not eliminating it entirely.