First, the CS difficulty works on a scale of 1-5, with 3 being the default. The AC works on a scale of 1-8, with 4 being the default. So, a 3 on CS works out to being equivalent to a 4 on AC. The default CS setting is not "easier" than AC.
Anyhow, it doesn't affect timing; it only affects the life bar mechanics, similar to using Easy.
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Difficulty Setting 
