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Surely this is fixed now, but it was a factor at one point according to my testing.
I don't believe they ever did.
Ultimately, I haven't looked into the assemblies to confirm this, but this makes the most sense as an implementation.
Also, when i originally did my testing, i noticed specific settings such as mesh distance and quality being set higher would cause frame loss even with dynamic mesh disabled. This might not be the case in the current build of the game, but it had proven itself to be of relevancy at the time of writing.