TL;DR
The number of significant figures displayed both for the value and its uncertainty depends on the value of the uncertainty. The details are not documented, but there seems to be a threshold around $0.35* 10^n$
EDIT
An important comment by Greg Hurst
The threshold seems to be 35.5, not 35, and is set with
Language
UncertaintyDump$UDT == 35.5
(on V13.2 at least). You can
change the value of this variable to move the threshold elsewhere. –
Scope
As pointed out by @JimB, this is a display-only issue, the internal representation of the values is not changed.
Wolfram usually does not document the details of the internal implementations of Mathematica. So the scope of the answer necessarily is restricted to what is documented and what can be observed. I will not engage on speculation.
Documentation
The documentation for Around
reads
Around[x,δ]
displays with one or two digits of the uncertainty δ shown; x is shown with the same number of digits to the right of the decimal point as is shown in δ.

Other display formats exist too
Around[x,δ]
is typically displayed as x±δ
. If δ
is very small compared to x
, as in Around[1.2345678,0.0000012]
, it is instead displayed in a form like 1.23456(78±12)
.

That is the extent of the explanation provided, details of the implementation are not explained.
Expected behaviour
The criteria should be to keep the Precision and Accuracy coherent. There is no point in having many decimal points that are within the uncertainty of the value.
The number of significant figures (precision) should be dependent upon the uncertainty of the value (accuracy).
Observed behaviour
One can observe that once is decided the number of significant digits on the value, the uncertainty is also displayed with the same number of significant digits, as expected and discussed in the previous title.
The seems to be a preferred threshold
TableForm[
Around[100.11111111111, #]&/@{0.035, 0.036, 0.35,0.36,3.5, 3.6 }
]
