You can't turn on the fog lights in the auto setting. Turn fully clockwise to on, then pull the switch out for the fog lights.
I suggest you read the owners manual - while it is very poorly written, this and many other things are ducemented there.
BTW, welcome to the forum. Make sure you scan through the many posts here, and learn how to use the search function so you can fins the answers to any questions that you may have that have already been discussed at length.
'04 Touareg - V6, Bi-Xen, Reflex Silver with Anthracite interior