You seem to be confusing two things.
1/ In FM4, all AI use upgraded cars (if the player allows it). This option has been introduced in order to level the playing field. As the player can use upgraded cars, so can the AI.
2/ In World Tour mode, the AI skill level (which can be chosen in Event List mode) is supposed to adapt to the player skill level based on previous performance.
And neither of those options are relevant to rubberbanding, which seems to be present at all difficulty levels, albeit less prevalent at higher difficulty levels.
I'm not confusing anything (despite how it looks
) I was adding the other dynamic AI feature in the context of being given pre-tuned gift cars + good driver = no net gain as a point of AI discussion, not thinking it's rubber banding..
Anyway, lets ignore that for a minute, and talk 'rubber banding'..
I've just done some tests to see how the AI behave in the various scenario's
Car: Pantera De Tomaso C425 (Gifted by levelling up)
Track: Burnese Alps
Race: World Tour C Class 3 laps
AI State: Should be at it's highest (Level 34, finishing 1st in all races)
Scenario A - Flat out from start to finish - I'm about 4-5 seconds a lap faster, and obviously win by some margin.
AI Times Lap 2: lead car 2:10/2:11, ranging to 2:14/2:15
AI Times Lap 3: doesn't record as I'm in 1st, laps times are frozen to the previous lap in the results page.
Scenario B - Tail the cars in 10th Place, keeping about 1/2 of the track behind them for the entire race
AI Times Lap 2: cars 1-4, 2:10 -2:14 then 5-9 2:18-2:22
AI Times Lap 3: cars 1-4, 2:10 -2:14 then 5-9 2:18-2:22
Scenario C - Tail the cars in last place but only 1-2 car lengths behind, then nail it on the last lap and see how many places I can make up (Deliberate sandbagging)
AI Times Lap 2: cars 1-9 2:10-2:18
AI Times Lap 3: All cars 2:10-2:15, I manage 6th (5 second quicker lap)
Scenario D - Keep mid pack (5th) and sandbag until the last lap..
AI Times Lap 2: cars 1-9 2:10-2:15
AI Times Lap 3: cars 1-9, 2:10-2:15 (I Just scrape 1st)
I had some variance in lap times, occasionally the AI on the first lap really fight it out, and can vary by 2-3 seconds, lap 2 onwards is generally more stable, but you do find some variance if running midpack. I ran the scenario's 3-4 times each to ensure the general behaviour was found.
Conclusion:
As long as you are within about 1/2 a lap of the cars, the lead car(s) go flatout no matter what.
If you tail the pack, the lead cars are flat-out but half the field will slow and stretch out a bit to give you a fighting chance, but you can't sandbag, because all usable scenarios of sandbagging, the lead cars have been flat out, and the rest of the field pick up the pace immediately you start progressing.
Considering the lead cars don't change their pace appreciably, it's only the second half of the field that tend to spread out if you are quite far back or tailing in last place and not challenging.. As soon as you challenge, they are back to full speed immediately.
To me, this is a far more subtle form of dynamic AI then plain old rubber banding, and I don't have any major issues with it's mechanics, especially in terms of 'sim' or 'arcade' references..