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I ended up just refunding the game until stuff like this is fixed. I tried everything from going through in-game settings one by one to trying a couple dozen performance-boosting console commands. I even tested several ini file configurations that I got from people without this issue. Regardless of what I did, it felt like having a torch out somehow capped FPS at 40-45 because everything had zero effect. I'm fairly certain that only a game update or driver update will fix this.
It looks like the torch is made up of multiple light sources (3?) all casting shadows. The following command reduced it to only 1 shadow being casted and improved my performance in the dense forest...at least on the Xbox Series X, but should work on PC. It still casts a shadow in the front, so it looks like a nicer ASE torch.
r.AllowPointLightCubemapShadows 0
When 0, will prevent point light cube map shadows from being used and the light will be unshadowed.