Adaptive Cruise Control does exist, and it's a neat feature on many of the newer cars...
...but typically they're preinstalled from the factory, not set up in an aftermarket fashion.
Haven't seen any with rear - facing sensors, either...
What the OP claims the dealer described is not Adaptive Cruise Control.
But by far the biggest issue is having ANY kind of aftermarket gizmo that could tap into and override driver and engine ECM throttle control.
Toyota's current throttle control technology is very sophisticated, and incorporates multiple layers of redundancy and multiple fail-safe features. There is no way that Toyota's hardware or control software would allow some Amazon dongle, plugged into the OBD port, to take over throttle control. If any type of spurious control input or component failure is detected, you're instantly in limp-mode.
So either 'the dealer' (possibly just a sales guy) is ignorant or confused, or just came up with a quick BS response to make the OP go away.
A user manual for the dongle would reveal all, but it's likely related to the aftermarket multimedia system, as SpeedRye suggested.