Lighting looks extremely washed out and bright with barely any shadows in packaged builld on friends PC?

I’d start with sg.EffectsQuality 0-3 since it looks to be related to the lighting. Also sg.PostProcessQuality since there are things related to eye adaptation in there.

Before asking your friend to test, try those commands yourself and see if you can replicate what they are seeing.

For the ray-tracing speculation. What GPU do you have? What GPU do they/(+twitch streamers?) have?