In Neutral the F-brake is engaged to hold the epicyclic geartrain stationary. When D is subsequently selected the A-clutch is engaged, the F-brake is released, and the 1st gear sprag takes over to provide the ‘earth’ for the geartrain. This is 1st gear i.e. A-clutch + sprag. The sprag earths the geartrain when the vehicle is accelerating but free-wheels when decelerating so there is no overrun braking in 1st gear.
If you select Manual 1st rather than D, the F-brake remains engaged and this by-passes the sprag, so you will get engine braking in 1st gear.
Do you still get the engagement delay in M1 as well as D?
Phil