Gift Card redemption at checkout has confusing message

When a customer chooses to redeem a Gift Card at checkout, they are presented with the following message. See image attached.

Can someone clarify this.

Does this mean if a customer has a $20 Gift Card, they would never be able to redeem the card as I don't have a single product below $20?

If the Gift Card must cover the full amount, why would subsequent uses of the remaining balance work? I'm confused.

 

Screen Shot 2020-12-26 at 17.12.40.png

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