True, 0.5C accuracy is minimum. The datasheet also stated:
The resolution of the temperature sensor is user-configurable to 9, 10, 11, or 12 bits, corresponding to increments of 0.5°C, 0.25°C, 0.125°C, and 0.0625°C, respectively. The default resolution at power-up is 12-bit.
That 12bit is what we use, however, we round that to 0.1C in our data format. In F, that is about max 0.2F.