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Disabling this setting helped me about the models draw distance issue too but the 2D spectators crowds still pop-in only at a quite short range when driving in first person/cockpit view (this issue not happening when using free camera mode), encountered with the recent CSP releases.Not exactly what happened to me, but it's similar; just in case it helps, take a look at this, although you may have already seen it.
Oooouh yeah, you nailed! You're the new nominee for my particular Hall of Fame! Thanks a lot; that behaviour of things popping in and out was driving me nuts...Well, better late than never.
Go to CSP / general settings/CPU optimizations/chunks optimizations and set it to disabled!
😁
Only a detail: I'm on CSP 0.3.0-preview140 and the route to the problematic setting it's a little different from the one you shared; in that version is CSP / Patch / OPTIMIZATIONS / CPU optimizations / Chunks optimization / Disabled. I had it in Advanced, as usually it's by default.
Thanks again...

