Hellbent,
WELCOME TO THE AWS WELDING FORUM!! Easy is our middle name...

well, okay, maybe we do bite once in a while.
There is no such thing as a stupid question nor of asking too many questions, especially when one is new to a company and trying to learn their application of the codes. No, there are not MANY things subject to interpretation. BUT, there may be things open to application, especially if you have an engineer who does the altering of the applicable code per Clause 1.4.1. Your in house inspections can call items above and beyond OR behind and below the code. It all depends upon exact application and the contract documents as to if it will be accepted by the customer and the TPI representing the customer/EOR.
People who resent the new guy usually are insecure in their own abilities, knowledge, skills, and future. Don't worry about it, but, watch your back.
The figures only apply when you are sent to them from a Table or the Text of the Code. You can't just go to the ones mentioned and use that criteria as suits you.
So, lengths of discontinuities. Undercut in particular. Can be a little tricky but isn't really that misleading or hard to understand. There will be room for some variation for a manufacturer compared to a fabricator of structural steel for a high rise. It will depend upon the product and it's usage and why D1.1 has been chosen as the applicable code. Many things are cyclic but that doesn't mean they fall into the arena of public safety. Also, as noted from Clause 2, you must consider number of cycles, time, and stress limits.
So, back to lengths of undercut. 1st, doesn't matter what others say, what does the code say and what do the contract documents say? Either yours as the manufacturer or the customer's when they spec out a product for purchase?
Going by the code, Lets work backwards: Material UNDER 1", Nothing over 1/16" undercut is allowed for over 2" of length in any 12". Now, you didn't tell us the whole story or pitch on your intermittent fillet welds. 2" in how many inches? 2-6, 2-12? If it is 2-6 then you will have more than 2" of undercut, according to your description, in every 12" of weld. If it is 2-12 it might be arguable.
Thus far, the length would be 2" of undercut is allowable in every 12" of weld if it is less than or equal to 1/16" deep. '0' length is acceptable if it is over 1/16" in depth.
Now, you say yours is not greater than 1/32". Code says that can be the entire length of the weld. Even for primary members. It can be less than or equal to 1/32" the entire length of the weld in material less than 1" in thickness. Which applies to your situation.
So, as long as you keep it below 1/32" you are allowable in all circumstances, lengths, and loads. UNLESS it is transverse to tensile stress in a primary member.
Having said that, if the company policy is to not allow that much undercut, far be it from a TPI to say, 'OH, don't make our product so good.' If the in house inspectors call out stricter controls than the code mandates that's their option. Spend all the time, money, and resources you want to make my product ultra spectacular.
You may need to reference the company QC Manual and see what it says. Especially if they have some form of Prequalified Fabrication Shop status. Many companies will call out things that seem good on paper but are really costing them money that need not be spent.
Better stop for now.
He Is In Control, Have a Great Day, Brent