Need clarification on target priority

I recently came across some documentation regarding priority between multiple target activities while investigating for an issue. It says "The priority is used if multiple activities are assigned to the same location with the same audience. If two or more activities are assigned to the location, the activity with the highest priority displays".

Also, I believe if we use custom code, then the location is not defined. Location is only defined if we use CSS selectors within target. Correct me if this is wrong?

At my organization since the last two years we have been using priority across different activities (all activities have custom code and no CSS selectors) with different and/or same audience group.

Now, the issue is that target is executing/pushing/adding custom code for multiple changes/activities at the same time even when they have different priority. This behavior is correct as per the documentation (link provided above). However, after two years of implementing this differently, it is very difficult for my team to believe that. As per my team it should be following the priority order.

Can someone please confirm how does priority work or share some information.