On my main 4K monitor, I can make my preview window large enough to fit the full project size 1920x1080 frame. I also have an external monitor which is 1920x1080. Both will display 1920x1080 happily if [Preview=Full] is selected.
However, if I select [Preview=Auto], the Preview and Display shrinks to 960x540 which is equivalent to "Half".
VP16 manual suggests (p.424) "The Auto setting will adjust the frame size to fit the Video Preview window size."
In my case, this is not the case. Some internal calculations don't seem to work out, thus maybe affecting preview performance, ending up with dropped frames? (Source material is 4K)