@baader, the demist button boosts the fan, sets recirculation to auto (primarily internal), prioritises the windscreen, turns on the AC and sets a suitable temperature. These are things MG think you need to demist the car. If you set you HVAC to settings other than these you should not expect the demist to work properly.
If your AC is not working properly then the condensation will not go, perhaps it needs to be checked. If you are sucking in outside air you are not helping.
I do not know what happens if you select any ECO mode but probably not good for your problem.
Personally, I have not had any issues in cold, wet, snowy and rainy glorious Yorkshire.