A normal lithium ion cell would be close to 4.2 V when fully charged, and around 3.6 V when discharged. So if you set the bench power supply to 3.6 V you are essentially simulating a discharged cell.
4.2 ±0.05 V is the max allowed voltage during charge.
2.0 V is the min allowed voltage during discharge, but it's not recommended to discharge it to 2.0 V, it's better to stop at about 3-3.7 V.
100% charged li-ion cell has about 4.15 V.
90% charged li-ion cell has about 4.06 V.
80% charged li-ion cell has about 3.98 V.
20% charged li-ion cell has about 3.74 V.
10% charged li-ion cell has about 3.68 V.
5% charged li-ion cell has about 3.45 V.
0% charged li-ion cell has about 3.0 V.
As you can see, below 10% charge voltage drops down very quickly.
So it's better to stop charge at about 3 V to prevent more fast cell degradation.