Hi Tim,
It makes sense not to enable auto-instancing for translucent passes as it would break the back-to-front draw order, which would cause visual blend issues. I don’t see why you would not want to enable auto-instancing for the custom depth pass though. That shouldn’t be dependent on draw order at least. I haven’t dared to try enabling it yet. I wanted to check here first to make sure I didn’t step on any mines.
All the best,
Marcus