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Note: Low and Medium options uses texture resolution 1024 for the player's car and 512 for others. High is 2048 for player's car. 1024 for others. Ultra is 4096 for player's car, 1024 for others.
Billboards are regulated by Track texture quality and maybe there is some impact from your storage speed. I myself using Medium setting in this one (I have a stuttering at some places with High on my RTX 3070, looks like 8 GB of GPU RAM is not enough) and yes, sometimes billboards are low resolution.
Is it enabled by default? because I can't find it in the graphics settings
I think exactly this should always be done
Ok, I did it from there in fact. I was asking because instead in Forza Horizon 5 even if you activate it from the system, you also have to activate it from the game's graphics settings menu