Nope, it will use automatic adjustment of AoB in LNAV and VORLOC, but in HDG it will use the AoB selector setting
I was under impression that AoB selector influences both HDG SEL and VOR/LOC modes.
Just need a reference to show him that he is wrong.
Well, a general read of Doc 8168 Vol. 1 (
http://code7700.com/pdfs/icao_doc_8168_vol_1.pdf) wouldn't hurt, but table I-2-3-1 in Chapter 3 should be the main reference.