Automatic Display need content events to be triggered
From Joomla! Documentation
Automatic Display parameter in User and Contact Field Context doesn´t apply in this context. There is no after Display, before Display and After Title in User and Contact. The same issue applys to components that don't implement the content plugin events.
This pertains only to Joomla! version(s): 3.7.0
What is the cause
Both components currently does not implement the content events. But they are needed to render the fields by this setting.
This is a known problem that is awaiting a fix in a future release: https://github.com/joomla/joomla-cms/issues/14377