I have a question regarding the battery and pv power that baffles me a bit. During the day when I have max output and my battery is set to Time of Use and I allow it to feed my system it first uses max power from the battery and the remaining power required from the pv, when I turn off the time of use then it uses max power on my pv and the rest from the grid.

My question is why does it not use max panel power and the remaining from the battery during peak sun? Why is it using max from the battery and the remaining from the pv? Is that normal? 

Check whether you're in battery priority work mode, and if so, try using load priority.

Also, if you are in "selling" mode, change it to something like Zero Export to Home or Zero Export to Load and see if the behaviour is as you expect it. Not 100% clear if this will solve  your issue, but these are the settings I use, and it works as you would expect it, with using max solar power first, and then battery.