We have everything scaled up so that 1 unity unit is 1 cm.
Does it affect lights and shadows calculation and is it possible to adjust that?
I noticed that I need to crank the intensity of spotlights to 1e+09 to see their effect and shadows are banded.
Yup, you can consider if you change the scaling your details isn’t, since HDRP lighting is physically based per oixel, you’re almost growing and shrinking within that space. Kind of light honey I shrunk the kids. Often times you would also shift additional settings along with this, LODs quality samples accordingly to move along with it