So is the karat capable of doing image-recognition tracking, or must the target be tracked manually referring to case #3?
Only manually.
In Samsim it is a compromised situation (yet...) In stead of semi tracking (or aid tracking,so called PA mode) which actually is a manual tracking of target in real ,in Samsim we have TOB(day camera) auto tracking . The manual tracking in Samsim is fulfilled with PY (RU) manual tracking (in real this is used only to rotate tarret in aziuth and not to follow a target !).