Hi @anentropic
Yeah, your understanding of LiteFS/LiteVFS is correct.
LiteFS with auto-stop/auto-start should work, but you need to be careful which machines can become primaries (candidate=true). If your configuration allows for more than one primary candidate, one them may be auto-stopped, lag behind significantly and later be promoted to a primary.
You can keep the primary machine always running to prevent this. Alternatively, you can configure LiteFS Cloud backup. It acts as the data authority so newly started machine can always pull the latest data from it.
Take a look at this post where something similar has been discussed - Understanding litefs for "rarely up" architecture