Ok so basically, this is an adaptive mode that determines what difficulty setting you’ll get. The amount of hp and parries contribute to your total assessment points. There are 5 assessments and then based on your total assessment points it gives you your difficulty setting. Read more… Parrying gets you 2 points each time. Boss difficulty is multiplied by 0.5 and affects how many points Hp gives to the assessment score.
Not a decided system yet. There may be other factors, or