Failsafe doesn't activate if Loiter mode is set by GCS

I was doing some testing on my APM 2.5 and aurduplane 2.74b. I setup a loiter mode from GCS and intentionally switch off my transmitter, but the APM keeps loiter mode for more than a minute or so and never went into circle mode and RTL. Fail-safe is working normally though in manual mode and FBWA if it has been set through position switches from the transmitter.

@zaraja
Have you followed these ArduPlane Wiki instructions for setting up the failsafe: plane.ardupilot.com/wiki/ardupla … -function/
Regards,
TCIII Admin

Yes i have followed the instructions. In fact GCS was displaying fail-safe at the time i switch off my transmitter, but the flight mode never changed.
As mentioned before, I have tested fail-safe (when not using GCS to change flight modes) and it works just fine.

Well i have just set Loiter mode as flight modes on my transmitter so i think Fail-Safe does not work in Loiter mode and it doesn’t matter if it has been set through GCS or RC transmitter.
In the manual it’s mentioned that make sure you are not in Auto mode while testing Fail-safe. So i am assuming that loiter is also kind of auto mode and fail-safe doesn’t work for both.

Does anyone know how to activate Failsafe in auto (loiter) mode?