Is this a limitation of the headlights or something is wrong on mine?


Unfortunately there is no cheap answer to this question. I believe some great people were able to retrofit later year xenon lights but it requires expensive headlights, software....too complicated and expensive IMHO.
Wife's past car was 2016 XC60 in top trim. It has had adaptive Xenon headlights, and it still was worse than she has now in her Sequoia. Toyota simply makes a wider light beam pattern, so you see corners well. I certainly wouldn't invest time and money into P2 xenon, not worth it.