Voice activity indicator does not accurately report gating status with low voice levels

Voice processing assumption: The existence of a “Voice Activity” option for the input mode and the input sensitivity slider suggests that there is a level based noise-gate on the voice transmit path (Tx).

Assuming that's how it works I would expect for people in the same voice channel with me to only hear my mic signal if the voice activity detector (VAD) indicator around my avatar is lit up. This isn't always the case. I've had friends, in the same voice channel as me, tell me they could hear other people talking in my room even when those people are speaking quietly enough such that my VAD indicator is not lighting up. 

This is pretty upsetting. It doesn't make any sense that people on the other call should be able to hear me if the software is suggesting that my Tx isn't active. I purposely set my input sensitivity slider high, and speak very closely into the mic, I assumed that meant I can be heard but other people in the room feel like they can talk to me and feel like they can say things in private if they wish, without me having to mute. 

If this is the indented behavior of the software, and the VAD indicator is really only supposed to show voice activity above a certain threshold, can there at least be a note somewhere that says you may be heard even though your voice indicator isn't lighting up?