Similar experience with the VMD function of WV-NW484 and WV-SW175. Found manuals for other models with the same type user interface and I think the first one below here might be the correct explanation:
http://panasonicspecassist.ca/OperatingInstructions/WVSF530_SF540_Series_Oper_Man.pdf
[Light detection control]
Select “On” or “Off” to determine whether or not to suspend video motion detection affected by brightness
change such by a dimming level control.
• Default: Off
IMPORTANT
• “Light detection control” may not work when brightness change is too small.
• When “On” is selected for “Light detection control”, the video motion detection may not be performed
even when detecting a subject moving over the whole screen.
http://www.manualslib.com/manual/419888/Panasonic-Wv-Nw502s.html?page=59#manual
[Light detection control]
Select "On" or "Off" to determine whether or not to detect video motion affected by brightness
change such by a dimming level control.
•Default: Off
Important:
• "Light detection control" may not work when brightness change is too small.
• When "On" is selected for "Light detection control", the video motion detection may sometimes not be performed
even when detecting a subject moving over the whole screen.
The WV-NW484 has an additional setting: "Scene change detection", seems almost like they mixed up explanation of this function with the “Light detection control”.