I don't use the auto-detect settings, and I prefer to run the game in max quality mode. My system can handle it so I'm not losing anything performance-wise.
As for whether lowering the graphics settings would allow the game to play better, that depends on your PC's hardware specs. If you're running a lower spec system then lowering the graphics settings could help the game run a bit faster. Though if you're running a high spec system then lowering the graphics settings wouldn't give you that much of a performance increase at all. All this depends on your processor speed, the amount of RAM you have, how powerful your graphics card is and so on. Lag is, more often than not, caused by your internet connection settings rather than your PC itself, but as I said in the case of lower spec systems you can improve things a little with your graphics settings.
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