nifi merge processor not behaving badly

Question

Requirement is to create files as near as possible to 128 MB. so I configured merge processor as per the screenshot.

as per my understanding, whichever condition satisfy, processor will take that one and go ahead. and I know size of file will reach 110MB before file count or time limit.

but this processor is creating files of size approx 3 MB, as if it is ignoring all the parameters and merging files, as n when they are arriving.

am i missing something very basic? or processor is broken.