The title is quite explicit, the crosshair ignores the parameters involving holding certain items in hand when the "Use dynamic crosshair style" option is off.
The mod works normally on parameters involving looking at blocks or entities

Minecraft : 1.19
Quilt Loader : 0.17.4
Dynamic Crosshair : 5.3.1

This was an early design decision that, in retrospect, does seem wrong.

I have published version 5.4 that should change this behaviour. And very rarely have I implemented a feature by simply removing some old code :)