Proxy only works on direct import

Hello,

I'm having an issue where the proxies for my drone footage are still very laggy in playback. I've tried all the different versions of proxies, custom too, but no luck. Made sure the toggle button is blue of course. Updated my drivers, etc.

Never had this issue before with the same drone footage. 

However, if I import the proxies directly into my project bin, they work buttery smooth. 

Question is, can I edit this way and export? Or will my final product be scaled down because I'm using the proxies directly?

Thanks in advance.

Specs:

MSI P65 Creator 9SE

Intel(R) Core(TM) i7-9750H CPU @ 2.60GHz 2.60 GHz

32.0 GB RAM

Nvidia GeForce RTX 2060