Global Mapper v26.0

What is "Nearby" when using Copy Attributes Between Overlapping/ Nearby Features

I have a set of polygons for populated areas, and a separate set of points with the names of towns. I want to merge them so that the polygons have the town names. The problem is that sometimes the points are not inside the polygons. Documentation for the "Copy Attributes Between Overlapping/ Nearby Features" suggests that the closest point could be used if there is no point inside the polygon. But when I try this, it doesn't work. Only polygons containing a point are updated. I'm guessing there must be a distance parameter that needs to be set for a maximum search distance for points to be considered. Further guessing that it is currently set to zero which is why some polygons are not getting any attributes copied over.

What am I missing?