Bite point adjuster works fine if the brakes have been properly bled. The screw increases or decreases the volume of the master cylinder.
If you take off the bleed port bolt and o-ring, you should see oil (unless the bleed is awful). Unwind the free stroke screw, and you’ll see the oil level drop as the master cylinder volume increases.
Bleed with the free stroke screw all the way out (when the blade stops moving outwards) – it helps the bleed procedure.
After you’re done, re-fit the bleed port bolt and o-ring, then adjust the free stroke screw to suit. Turning it clockwise reduces the master cylinder volume, and so oil is pushed into the system (similar to over-filling) so stroke is reduced.
The fact that the blade also moves with the free stroke adjust partially masks the changes it makes, but if you compensate with the reach adjust so that the starting point of the lever is the same in each case, then the difference should be clear.
As above, a bad bleed will reduce its effect.
Early M8000s had some issues, but most complaints I see about variable bite point is just down to lazy bleeds.