You're right, for the most part. However, because the new logic is that users with full-reviewed versions should only receive full-reviewed updates, serving a full-reviewed version for a prelim-reviewed add-on would prevent users of prelim reviewed versions from getting further updates until the add-on is bumped to full review.

Since that's not really ideal, the current logic only serves preliminary reviewed versions as updates for preliminary reviewed add-ons, and 1.2.2, being a full-reviewed version belonging to a prelim-reviewed add-on, won't be served as an update.