No:

If there are already points on the section element, they are used and the information they contain is duplicated. If there are not yet any points on the section element, it is stationed using the value entered for Automatic Station Difference.

Yes:

Station points are created at all the points where the section line and all the relevant grid lines in the DTM intersect. If a value is entered for Automatic Station Difference, these stations are created in addition.
Example

Example of grid line section - "Yes"

A Stationing is at the points where the road location line intersects the grid lines

Spec:

Station points are placed at the points of intersection with special lines. If a value is entered for Automatic Station Difference, these stations are created in addition.