Realistic night road traffic with headlights and tail lights driving on the road

I don’t believe I have a solve for your question, but related to it, here is a bug about car traffic you might want to check out to see if you agree with:

[BUG/FEATURE] TAA is transforming road traffic into ghosts (self-cancelling moving pixels) - Virtual Reality (VR) / VR Wishlist - Microsoft Flight Simulator Forums

As for the topic about car traffic head/tail lights, and readers wondering about how X-Plane is doing it, here is a recent post of mine with links to videos showcasing this:

Night lighting issues still present - The community solutions - Bugs & Issues / Scenery - Microsoft Flight Simulator Forums