P.S. I timed what it takes to export, reimport and convert to HDR vs just creating HDR directly and it is faster to just create the HDR from the original files:
Reduce size by export to dng using a export preset-> automatic reimport -> merge to HDR: 35 seconds
Direct merge to HDR: 13 seconds
The actual process is faster for the direct merge but I counted the right click to get to the HDR dialog.
Now I tested this I can see that you are right that even though the interface says it is correcting for the lens distortion and vignette, it isn't actually doing that for the reduced size export image. It seems to only correct about 50% of the distortion! So there might be a bug here indeed. That said, just doing it from the orginal raf files is a lot faster anyway so that is what you should do. Interestingly if you merge to HDR using the raf files and then export to reduced size dng from there, the lens correction is correctly applied to the final file, so this is indeed some kind of effect from the merging to HDR using reduced-size dng files.
It will be even faster if you have a folder full of brackets and just select all -> enhance-> merge to HDR and it will automatically merge all HDR brackets.
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