I have a 2014 v three. My question is: When running the AC and I set the temperature knob to a higher setting does the compressor run less or (like the wife's minvan) is the air just heated back up a bit by the car's heater?
The Prius has a more efficient AC system than prior standard designs. I have understood that it modulates the cooling power without reheating the air. The 2010 introduced a new efficiency component that had never before been used in passenger cars: New Prius A/C system first car to use ejector technology | PriusChat Unfortunately, the article linked from that thread is no longer available.
The electric driven AC compressor is variable speed inverter driven so it is not necessary to add heat to control the cooling temperature. It will run at various speeds or shutdown as necessary. As indicated above, this AC system is far more efficient and utilizes a number of ambient temperature, humidity and sun load sensors in it's auto mode. The Prius v AC design is also higher capacity than the standard Prius.