In my previous cars, when I was using the the navigation, the other sources such as music sound level would lower automatically so it would be easier to hear the navigation directions. I have noticed that Prius' navigation does not do that. Is there a setting I have to select for this to happen or is this the way the system is designed to work?
no, unfortunately the only thing you can do is set a volume level for navigation. this setting is independent of the music volume.