Most people just leave the Lineartronic CVT to do the ratio choosing. I am unsure whether 1st "gear" ratio is the lowest gearing available, or just so happens to be the lowest preset ratio available out of the 7 ratios available on the 3rd generation XV Crosstrek. Based on previous 4EAT Subaru vehicles, I would believe the manual mode makes the AWD system bias towards a 50:50 torque split, however, X-MODE already strengthens AWD clutch pack application when active.
A big pet peeve of mine...
breaking = the act of damaging/destroying something
braking = the action of deliberately slowing a vehicle down
"Why would I want to profess my feelings for some 3D girl?" - Tomoya Aki from the anime Saekano