So I did some testing.
Both my Logitech mice do NOT respect the manifest setting and always return a delta of +-120. However if "smooth scrolling" is enabled, the mice can provide smaller deltas. But (a big, big but): only apps that Logitech has approved get the smaller deltas. All other apps still get the default 120 sized delta.
You can test this by having a browser (e.g. edge or chrome) with focus set to it, then your own app on the side. When you now scroll over your own app (browser still needs to have focus!) then your app will get the smaller scroll deltas.
Another way to trick the logitech drivers is to rename your app to chrome.exe or firefox.exe - if your app starts with that exe name then it will get the smaller delta.
To test that this really is a logitech problem I also tried with the Microsoft surface mouse: with this mouse you get the scroll deltas as expected, you don't even have to activate something like "smooth scrolling" first. Ok, the surface mouse doesn't really have a scroll "wheel", it's more like a touchpad when scrolling. But anyway...