Walking around in the environment with a lit torch causes massive lag especially while around lots of shrubs, trees, bushes etc. Lag is also noticed even more so while turning and even while the torch is lit on the ground and walking around it within a 10 meter radius causes lag. I did no find any issues with the battery powered torches during the testing.
This issue is very noticeable on a PlayStation 5, I can only imagine how bad it might be on the PlayStation 4.