Sorry for the long delay.
I agree, it looks a lot like it - but there is a clear difference if I uncheck it and then try (the delay feels worse and the games appear in one big clump, instead of in a rapid succession, as expected.)
Front End seems to be using the Default theme, the collection I have installed is Dreams 64, if that makes a difference. I noticed the Box images were fairly large (taking 1.7GB on disk) so I batch converted those first to smaller PNGs, but that didn't help. Then I converted those to really small JPEGs without transparency, but even that didn't help - the performance was pretty much identical to original images. I've also tried with using just a plain black backdrop (with those small jpegs), using desktop wallpaper etc - none of those made a difference. Same with Dynamic Box sizing, I didn't notice any difference. I also made sure debug logs are off (didn't notice any perf impact with those.)
One thing that does make difference is lowering the amount (3011) of games - with only 128 games in one of the playlists, the scrolling is almost smooth (still not 100%, but better.)
For what it's worth, if I navigate to that folder in Windows, the file explorer can smoothly scroll through all of those images regardless of their size without any hitches.