(Please note: this is probably device-specific, as different devices have different view distance options)

My iPad mini has 4 notches of view distance when in the title screen option menu. Let's say I set it to four here. If I join any of my worlds (finite or infinite), and go to options, my view distance has been set to the first of 3 notches. Not only have I lost a view distance notch, but it has automatically set me to the first notch.

I can provide screen shots if you would like.

I am using an iPad mini (1), running iOS 8.4.