How exactly does batching work?

So ive read into the Level Batching document on the Unturned Documentation and have tried to understand it. So far ive understood that objects apply for batching if they fulfill these requirements

And I can preview my own objects on how the atlas has interacted with them by enabling this option in the steam launch options
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But then why does for example a bench I made in the next second further LOD turn to its normal colors?


This is the texture the bench uses, I first thought I made a separate wooden texture for the bench but then noticed I used this one with its brown pixels

Also how do I get the option -LogLevelBatchingTextureAtlasExclusions enabled is it like this?
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Where exactly is that log stored is it just the error log?

Yes - anything logged is going to appear in the Error Log (in-game) and the actual log files. https://support.smartlydressedgames.com/hc/en-us/articles/12299037547284-Where-are-the-log-files

So I tried to look there after being inside of my map with the objects created but the error log is still empty, what am I doing wrong?

Other question does batching apply to objects that have multiple materials?