Hello,
Automatic instancing groups all visible static meshes (mobility doesn’t matter here) with the same LOD level and material instance. In this case meshes with LOD0 would be one draw call, meshes with LOD2 would be a second draw etc. You can verify it yourself by toggling r.MeshDrawCommands.DynamicInstancing and checking its impact on draw call stats or by using r.MeshDrawCommands.LogDynamicInstancingStats.
Keep in mind that automatic instancing is happening pretty late in the pipeline . Every mesh needs to be processed and culled individually and they are merged just for the final GPU submission. This means that depending on a specific use case it may be better to merge those meshes manually.