Confirmed this happens on Cave devices as well. Working on a fix.

The following revision refers to this bug:
  https://chromium.googlesource.com/chromium/src.git/+/faf816e3de6999c544d30fe1c8d07700642f1619

commit faf816e3de6999c544d30fe1c8d07700642f1619
Author: Malay Keshav <malaykeshav@chromium.org>
Date: Tue May 22 22:59:03 2018

Fix rule to correctly tag the best resolution for FHD devices

The best resolution for FHD(1080p) devices are not the ones where the ui
scale is 1 rather its the mode where the ui scale is 0.8 and the device
scale factor is 1.25.

Bug:  845208 
Cq-Include-Trybots: master.tryserver.chromium.linux:closure_compilation
Change-Id: If3ec352d3edbfb85216f5ee1dd125857d13d1abb
Component: Display settings
Reviewed-on: https://chromium-review.googlesource.com/1067592
Reviewed-by: Steven Bennetts <stevenjb@chromium.org>
Commit-Queue: Malay Keshav <malaykeshav@chromium.org>
Cr-Commit-Position: refs/heads/master@{#560825}
[modify] https://crrev.com/faf816e3de6999c544d30fe1c8d07700642f1619/chrome/browser/resources/settings/device_page/display.js