Dynamic altitude, as we called it, is a complex subject. I don't know the answer with the S2 but my S2 does follow down trails.
As far as I know the groundbreaking 3DR was the 1st to have dynamic altitude. The Solo used a barometer on Solo and the barometer from a device like an iPad. It actually worked well with altitude corrections smooth but a little laggy.
DJI briefly used baro based dynamic altitude in the P3 with GPS follow but it did not work well. DJI switched to Active Track which was optical follow and added VPS, a visual positioning system which had downward facing cameras to try and maintain AGL during tracking. DJI pushed VPS but I found it does not work well. It only worked at low speed and low altitude. It was found VPS worked best with high contrast grainy terrain. Homogenous landscapes like water and snow caused a lot of crashes with Phantoms diving into the water or ground.
I found baro based dynamic altitude the best. The Yuneec Typhoon H was awesome, fast and the Wizard Wand had a baro built in, it was similar to the S2 beacon; I searched and could not find any information on baro's installed in the S2 making me think it is downward facing camera based.
The Halo drone had great dynamic altitude. The drone, watch, tracking puck and controller all had baro's. Prior to flight you had calibrate the altitude difference between the drone and device, it was very smooth and accurate; I could hold AGL + or - 4 feet at speed.
Anyway sorry this is not an answer but next time I go out I will monitor my S2's dynamic altitude going downhill, I know it can be a little jumpy - because it's depending on visual only?
But as mentioned Skydio should have a handle on this maybe submit a ticket.