Hey there @doswls1! Welcome back to the community! The short answer is that no, it shouldn’t have too much performance difference due to the fact that Mutable bakes morphs at character generation, so the only extra overhead is the mesh build process when the morph targets get baked in, and that shouldn’t be much. Though if you’re having hundreds generating at once, that cost might become significant, though I doubt it.
Yes this is normal behavior. From what I understand it creates a new SKM and just substitutes it immediately, so the ABP would reset state every time.
There are workarounds for this, such as keeping the actual base SKM handling the animations hidden and assign it in the main ABP. Set up the Mutable mesh as a child under it and use the Copy Pose From Mesh node to take the animations from the base mesh. This should sync the currently running pose even when your ABP resets, though this could change.
This is best done with things that need to modify on the fly like something akin to character creation, otherwise you wouldn’t see the ABP change over anyway if you prepare the characters before hand you can already have the correct bindings.