Had not seen that before, but none-the-less, if you follow the link you get this
SQLITE_ENABLE_UPDATE_DELETE_LIMIT
This option enables an optional ORDER BY and LIMIT clause on UPDATE and DELETE statements.
If this option is defined, then it must also be defined when using the 'lemon' tool to generate a parse.c file. Because of this, this option may only be used when the library is built from source, not from the amalgamation or from the collection of pre-packaged C files provided for non-Unix like platforms on the website.
so it all depends on whether you compiled the library with the proper define enabled.
Also, SQL is set based. If you have the proper indexes established on your data, then the engine is not continuing to "look" for any matching records. Looks like this option is used only to limit the number of records it will update/delete, not how many records it will find. Again, from the link provided:
If an UPDATE statement has a LIMIT clause, the maximum number of rows that will be updated is found by evaluating the accompanying expression and casting it to an integer value. A negative value is interpreted as "no limit".
If the LIMIT expression evaluates to non-negative value N and the UPDATE statement has an ORDER BY clause, then all rows that would be updated in the absence of the LIMIT clause are sorted according to the ORDER BY and the first N updated. If the UPDATE statement also has an OFFSET clause, then it is similarly evaluated and cast to an integer value. If the OFFSET expression evaluates to a non-negative value M, then the first M rows are skipped and the following N rows updated instead.
If the UPDATE statement has no ORDER BY clause, then all rows that would be updated in the absence of the LIMIT clause are assembled in an arbitrary order before applying the LIMIT and OFFSET clauses to determine which are actually updated.
The ORDER BY clause on an UPDATE statement is used only to determine which rows fall within the LIMIT. The order in which rows are modified is arbitrary and is not influenced by the ORDER BY clause.