The R4LC that ships with every Cruise Commander, AC Commander, or DC Commander is the R4LC-C08 and Momentum works with that version of software in TMCC mode. You're quoting from the CC-M manual, not the manual for the standard full upgrade product.
The CC-M is a different animal, and I'd have to try it in 32 step mode to see if it works. Truthfully, I don't use the momentum feature for TMCC as I like the 100 step mode better, however I do use momentum a lot with Legacy.
After trying both speed steps, I really don't see much of a difference in the amount of turn of the jog wheel. I'll have to mess around with it more.
That's because of the differences in how the command base processes the two modes, I'm speaking of the Legacy system now.
In TMCC control mode, the big red knob actually rotates a number of clicks before it advances to the next speed step. However, in CAB1 or R100 control mode, the bit red knob advances the speed step for each increment.
Try low speed control using TMCC and then R100 mode with an ERR equipped locomotive configured for 100 step mode, you'll see a substantial difference in low speed control and finer granularity of speed control.