Hi Az,
That sounds correct. When SnapAmp Disables it commands PWMRx=0 which is basically zero volts. Zero Volts is the same as a short circuit. The braking action should be very similar to if you just short the motor leads. It is like a shorted generator.
Setting the Peak Current Limit that low generates a Fault which open circuits all the FETS. So the motor should spin freely.
You should also be able to command zero current with PWMCx=0. This should also generate no torque and the motor should spin freely.
Regards
TK