While it hasn't been confirmed I assumed this would be a world setting. Either way, if someone can change it, this also means you could also just.. not change it. Maybe someone wants to play Expert mode but switch to Easy for when they want to build, instead of having to deal with harder enemies when they're not even progressing.
i never had to change a mode in game. unless it was hardmode of course
i'm pretty sure this is a thing you can set this only at the start
(though it isn't confirmed)
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