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If you want them to be instanced you have to use DrawMeshInstanced instead of DrawMesh.

 

The tl;dr is

You create a Matrix4x4[] with all the transforms.

You set it in a for loop like:

myMatrices.SetTRS(calculatedPositionToUse, Quaternion.identity, Vector3.one);

And then call somewhere once per frame

Graphics.DrawMeshInstanced(myMesh, 0, myMaterial, myMatrices);

And that should get you started

 

It's not a particularly important limit, it's trivial to have multiple sets of 1024. If you're trying to bypass anything, you should instead spend that extra work on DrawMeshInstancedIndirect

And that's where you draw millions without overhead.

 

On the toppic of,
Does anyone know how to instance mesh with CommandBuffer.DrawMeshInstanced and make it look the same as Graphics.DrawMeshInstanced?

With command buffer either lights or shadows doesn't look the same;
Graphics.DrawMeshInstanced works, but it has more overhead.