Hi Davesnow
From memory the draw distance is, in part, set in the content itself; not sure about the maximum draw distance though. However it is set differently to other assets, in that the LOD distances are set in the material properties and not via the config or lm.txt
Due to the performance cost of clutter effects (both the materials used, to 'fade' between LODs, and the greater object density), there is a limit on how far clutter meshes should be visible. The idea is to provide up close detail, that is removed in the distance, but likely before other more obvious objects. So for example, smaller trackside rocks or shrubs.
These would then be mixed with other 'normal' scenery objects, which remain visible over a greater distance, so as to keep some detail in place without as much of a performance cost.
So basically the 'clutter FX' objects should be considered 'near distance' detail objects, and you would then mix in some 'far distance' objects around them to provide some larger more obvious details in the distance when the clutter FX objects disappear. You would likely also need some 'fill' objects that help hide when the clutter FX objects disappear as well, but this would depend on which assets you are using in the Clutter Effect layer.
That said, if you can provide an example of assets that are definitely disappearing too close, with no way to disguise this, then we can certainly take another look into it
Regards