Well, yes. The first mode is 100%. If you're in 100% mode, and then you turn off the light and wait two seconds, the light resets. At that point, when you turn the light back on it will be in 100% mode again.
Back to the PWM/MCU issue, I just noticed that I can hear when this drop-in is in the 20% and 2% modes! When I put my ear near the bezel and then cycle through, these last two modes buzz a tiny bit. Strange! The pitch is higher for 20% than it is for 2%, for what it's worth...