The unit shuts down when set at 50% because the controller is sensing that the humidity is below 50% RH. It comes on when set at 38 because the RH is higher, so it will try and dehumidify down to 38% RH.
According to the EPA the ideal RH in a conditioned space is 48 to 54%. You can set it and leave it at 50% if you are comfortable there and the dehumidifier will automatically come on when the RH is above 50% and will automatically turn off when the RH is 50% or below.
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