What is server-side hit detection?

Thank you for your careful explanation

I work as a network engineer and did not understand the combination of abstract components of the game engine. Thanks to your answers, I have seen the components of the game engine. As you say, clients can not be trusted.

What I understood in your explanation is below.

The server can only perform physical calculations from the client’s direction and location information.

Physics calculations that do not involve rendering do not consume many resources. (Are there any algorithms?)

This is a new discovery for me. (I thought that physical computation requires a lot of resources.)

Additional questions: If the game is such that many users like MMO fight on a big level, is it difficult for high spec servers to accommodate many matches? I heard that in the implementation done by DICE, low-latency users calculate on the client side and high-latency users calculate on the server side. Do you consider huge games like BF to be implemented as hybrids?