The "Automatically re-enable sprite limit" feature needs to be improved

[Nix20]

I've been testing this feature in some games and it works well for the most part. But there's a particular scene in Dragon Warrior IV where it doesn't work properly. I made a video showing some comparisons:
https://www.dropbox.com/s/gccuua8abmhoup7/Dragon%20Warrior%20IV%20-%20Sprite%20Limit%20Comparisons.mkv?dl=0

First it shows how it looks with sprite limits on, then with it off, and then with it off but with the re-enable feature checked at the same time. As shown in the video, it only works partially instead of accurately replicating how it's supposed to look.

Using the one TAS from TASVideos, I made a save file and save state to reach that part quickly:
DW4.zip