The car will absolutely stop if there's a stopped car in front of it. Not just in HA, but in ACC. I have never had the car not slow itself down in time. Not sure what your experience is about here.
I've used HA and AAC for a couple thousand miles now. I was even testing HA before the update was released to the mainstream audience.
Despite all of that working the way I expect it to, there is no universe in which I would allow the car (or allow myself) to approach a stop sign at 55 MPH. There is a time for ACC and (what I can only assume is an expressway if the speed limit was 55 MPH and there were intersections with stop signs) the road you were on does not sound like the correct road to use it on.
If you're coming up to a stop sign ahead of you and you're going 55 MPH, you the driver should be aware of that at least 150 yards away, not 50.
Whatever fear you experienced, it sounds like you did that to yourself. ACC and even HA were never advertised as "self driving" features and under no circumstance should you ever rely solely on ADAS to drive. These features allow us to reduce the amount of attention we need to pay to the road and make it less stressful at the same time. They were never intended to replace a responsible driver who is aware they are driving a potential 5,300 pound death machine at extremely high speeds relative to it's surroundings.
Also, not sure what point you were trying to prove with the 6 month "reading the manual claim". The 1.X software was dramatically different and worse and there are plenty of things that changes that would reflect in the older versions of the manual.
The software is progressing too fast for you to "learn the car inside and out" by reading the owner's manual.