Simulation distance not working for minecarts

The simulation distance doesn't seem to work as intended.

Recreate the bug :
1. Lay rails for 2+ chunks, and set ur simulation distance to 2 chunks.
2. Send a minecart on the rails

Expected :
The minecart should not proceed(should freeze) after 2 chunks due to simulation distance set to 2 chunks

Reality :
The minecart continues to move after 2 chunks