Got it thanks, is there any harm (other than smaller fonts) to leaving it on the "More Space" setting ? This is on a 2019 16" Macbook Pro with the AMD 5500M 8GB Video
Well, what do you mean "harm"? I can't remember if the default for that machine is even @2x. It wasn't for the 15" after the 2016 redesign. There you actually had to go to the bigger scaled option to get it to @2x.
But to answer your question there are two consequences to non-integer scaling.
1) It's less sharp. - But again, default might not even be @2x on the 2019 - I can't remember.
2) The GPU needs to do a little more work, but it's really not that big a deal.
When you run @2x with a perfect 2:1 resolution match the GPU needs to render an image exactly at the display resolution. If your scale resolution is smaller, what it will do is render @3x (or more) and downscale it to fit the display.
I can't remember the 16" 2019 resolutions so I will use the 15" of the era to demonstrate.
Native resolution 2880x1800.
@2x screen space resolution: 1440x900
Rendering the screen space resolution @2x = 2880x1800
If we want things to be bigger, we might set the screen space resolution to, I dunno, let's set 1280x800.
Well, then macOS will have the GPU render 3840x2400 (@3x) and downscale it to 2880x1800.
The reason is that if you simply rendered @2x you would get an image of lower quality than the display and upscaling that gives a lower quality result than downscaling from a higher resolution image. - But for just showing a desktop, it doesn't matter all that much to performance