Here is some information about step climb after a given heading:
https://www.caa.co.uk/docs/33/CAP493...tion201004.pdf And about level bust:
https://www.caa.co.uk/docs/33/CAP710.PDF
I dont think you will get a rule by a CAA how to set your MCP as they are too many types of aircraft,some even without an MCP mind you
I know how it will be set in mine thats all i can say.
If the technology we carry is creating new threats, in this case enhanced Mode S Tx displaying preselected altitude causing ATC to intervene despite the aircraft being flown on the correct lateral and vertical path, then I believe there is a wider discussion to be had.
They dont fly your aircraft,they are just making sure you will level off at the correct altitude.
They dont inquire to make you feel like you dont know how to manage your aircraft,they are just responding to risk as level busts are recurrent at these airports....and well lets face it some are because the initial altitude wasnt set and crews ended up in an "open" mode eventhough vnav was planned.
I find it normal that ATC is using this tool and if they recognise a potential risk,(aircraft will pass 1000 ft above the initial hard altitude )to confirm with you,that is CRM whether pilots like it or not.
Good luck with your thread.