Correct. Even if you use software programming, it'll 'round' it to the nearest legal step according to its preprogrammed smallest step for that band. So fed VHF cannot be programmed in 12.5 KHz channels, it will round to the nearest 5 KHz channel.
165.0875 becomes 165.090 - This really doesn't matter, for receive, but it's annoying.
By contrast, the BCD396T will accept ANY 'legitimate' step size entry directly, you don't have to change the step to enter something odd. 5, 6.25, 7.5, 10, 12.5, whatever, it just accepts it as a valid step and programs it in, all bands.