So, a picture paints a thousand words

So the above is a Corsa handbrake mechanism and is now pretty common on many marks but, is good for demonstrating how the auto adjuster works.
So when you apply the handbrake, the large lever on the right shoe is pulled and pushes the shoe towards the drum, the top link/adjuster then simultaneously pushes the left shoe onto the drum.
To auto adjust, you need to look at the adjusting pawl on the left, this can be seen as the bent bit of metal with its end resting on the left end of the link bar/adjuster.
When you press the foot brake, both shoes move outwards, this adjusting pawl moves with them and its end moves slightly up and above the link bar/adjuster. As the brake is released, this adjusting pawl travels down again and rotates the toothed wheel at the end of the adjuster which, over a number of presses, lengthens the link bar/adjuster and takes up the slack.
Lets consider now what happens when the hand brake cable is to tight.
The actuator lever on the right is always under tension and the consequently, the adjusting pawl sits higher than it should at rest, as a result, the toothed wheel can not be rotated.....