It's working correctly for the incorrect way you have installed the alarm.
I'm a little confused with "I can then leave the premises and when I break in the alarm will only go off after it automatically resets?though.
Does this all fit?
Turn on alarm, move towards door, picked up by PiR, tone changes, go outside, shut door, tone changes, tone then stops.
Return home, open door, (nothing happen?), enter, PiR picks you up, tone changes. go to panel, turn off.
If you don't turn off, full alarm.
The above is the wrong way to fit an alarm.
A contact on the front door is what is needed. It's the correct way to do things. > Example.
Have a break in through the hall window, with door connected, instant full alarm.
Have a break in through hall window, with no door connection, Entry timer starts, 30, 45, 60 seconds to do what he likes, get the idea now.
Return home, open door, Entry timer starts, (PiR would automatically switche to be an Entry detector), go to panel, turn off.
If you don't turn off, full alarm.
The PiR connected to z2 would be an Entry/Exit circuit, the door a Final Exit circuit.
A 'metal' front door is no reason for not fitting a contact. It's the CORRECT way to do it.
ps
If this was a Pro system, we're not allowed to have movement detectors as the Final Exit circuit, for reasons above.