Mode Manager shadow mode question

If I'm correct, Mode Manager will track what the current mode would have been if the current mode is Away. Thus, upon returning it will set the correct mode based on Time of Day. I've enabled this using the "Modes to ignore time changes".

Does it behave the same way with other modes that are added to the "Modes to ignore time changes" list?

For example:
I have a mode Midnight, EarlyMorning, and Daytime. The system only changes away from mode Midnight if there is motion detected in my living room. When motion is detected, I want it to change to either mode EarlyMorning or Daytime based on the time of day. I have set EarlyMorning to 5AM and Daytime to 7:45 in Mode Manager. Goal is to prevent it switching away from mode Midnight if it's earlier than 5AM.

Will Mode Manager track what the time would have been and set the correct mode based on time of day, or does this require a rule in RM?