Does encapsulation cause performance degradation?
I've heard people say that, but I wonder if that is actually the case.
Yes, this did happen with the rollout of SDK2. The biggest issues were fixed, but there is still a small performance overhead, and in certain cases pre-SDK2 Construct releases can be a tiny bit faster.
From what I understand, the SDK3 being discussed here applies to the editor API, so it shouldn’t affect runtime game performance. That said, there have been reports of the editor lagging or freezing for some devs. Here is one from just two weeks ago. It also runs out of memory on large projects. I really hope SDK3 encapsulation doesn’t make those issues worse.