Nothing draw distance releated is changed. Just the resolution and the dialog FOV. The game always had fairly severe pop-ins. It only loads a certain amount of ‘grids’ at once, no matter how high you set the draw distance.
There is an .ini setting named ‘uGridsToLoad’ or something similar that allows you to load more grids. Heavily impacts performance and memory consumption though, so be careful. If memory serves right 9 was what I settled for back in the day, beyond that the game supposedly becomes unstable. Probably earlier with mods that add more objects to the scenery.