No:

If there are already points on the section element, they are used and the information they contain is duplicated. If there are not any points on the section element, it is stationed using the value entered in Automatic Station Spacing.

Yes:

Station points are created at all the points where the section line and all the relevant grid lines in the DTM intersect. If there is a value entered at Automatic Station Spacing these stations are created additionally.
Example

Example of grid line section - Yes

A Stationing at the intersections with the grid lines

Spec

Station points are placed at the points of intersection with special lines. If there is a value entered at Automatic Station Spacing these stations are created additionally.